Subject: Re: [LPNY DISCUSS] Liberty: -- Bush's tax increase -- SOC SEC Date: Sun, 31 Aug 2003 12:24:01 -0400 To: From: Bob Armstrong On Sat, 30 Aug 2003 12:44:32 EDT, crestonave@aol.com wrote: >=A0In a message dated 8/30/2003 12:03:00 PM Eastern Daylight Time,= bob@cosy.com >=A0writes: >=A0When those bonds issued to other >=A0agencies of the State , and the accrued interest booked on >=A0them , become due and needed , the only source of funds to >=A0repay them , ie , provide cash back to SS , will be additional >=A0taxes . >=A0Unlike other government debt, the social security notes are= owned by the US >=A0Government, Do they really need to be paid off? Suppose the= government just >=A0"forgave" the debt, wiped it off the books? Wouldn't we be in= essentially the >=A0same situation we are today, where Soc Sec is a "pay as you go= system"? True that the debt is no more meaningful than having your left= pocket loan your right pocket some money somehow expecting your right= pocket to generate income to pay it back with interest . But the effective difference will be that we are currently= paying substantially more than SS costs and that surplus is being= dumped into the general budget to reduce total external debt . When the SS= surplus ends , it will have to become truly pay as you go with increased= taxes and/or increased debt sales - if anybody will buy it . --=A0 =A0Bob Armstrong -- http://CoSy.com -- 212-285-1864 Liberty : http://cosy.com/Liberty.htm