Three principles should be observed in legislation on this subject. First, the system adopted, except for the money necessary to initiate it, should be self-sustaining in the sense that funds for the payment of insurance benefits should not come from the proceeds of general taxation. Second, excepting in old-age insurance, actual management should be left to the States subject to standards established by the Federal Government. Third, sound financial management of the funds and the reserves, and protection of the credit structure of the Nation should be assured by retaining Federal control over all funds through trustees in the Treasury of the United States.FDR January 1935 on proposed Social Security
At least two Republican politicians have suggested that instead of financing Social Security through dedicated funding – that is worker and employer payroll taxes – the funding be part of the federal budget subject to the machinations of every Congress. Think about what that could mean.
The financial situation facing Social Security could easily have been avoided with minor and gradual adjustments to it’s dedicated taxes over several years. Congress has failed to do even that. Imagine if annual funding as part of the total federal budget process determined the solvency of Social Security.
Yes, the cost of Social Security spending is on automatic, those costs will increase based on factors beyond the control of Congress. That’s why the Trustees urge adjustments year after year.