This kind of social media post is not helpful. It is untrue and misleading. For one thing nobody has been fleecing SS.
✔️ If you assume that the Treasury Department would issue other bonds rather than to the SS Trust to fund the government (a virtual guarantee) then Social Security does not add to national debt.
However, Medicare does. About 75% of the cost of Part B is funded from general revenue, not dedicated taxes and premiums. In addition, the Medicare payroll taxes are insufficient to pay for Medicare Part A. So taxes need to be increased or general revenue used.
The Medicare Hospital Insurance (HI) Trust Fund, which finances Medicare Part A services, is projected to become insolvent in the second quarter of 2033. This means that, starting in 2033, the fund’s reserves will be depleted, and incoming revenues will cover only about 89% of Part A expenses.
✔️ Social Security does not have a surplus. It has a rapidly declining reserve. Over the next 75-year period the unfunded liability is roughly $29.3 trillion. ssa
✔️ The Social Security trust is allocated US Treasury Bonds paying the trust about $63 billion a year in interest. This funding method has been used since 1939.
✔️ Since 2021 the SS Trust has been redeeming its Treasury bond holdings in order to continue paying full benefits. All of its bonds will have been redeemed and interest income will no longer be received by 2032.
At that point the revenue to the trust from payroll taxes and income taxes paid on social security benefits will be insufficient to pay full benefits – but rather around 78% of what is being paid today.
