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UE/Labor Party On-Line Social Security Workshop

Plan (#1)

There are numerous plans being circulated to privatize Social Security. On the next three pages, we take a short look at the three main features of President Clinton’s plan because of the massive promotional campaign currently underway to push it through.


The Clinton Plan —
Using the Social Security
Trust Fund For Other Purposes

"Transferring 62% of the projected budget surpluses over the next 15 years — more than $2.7 trillion — to the Social Security system."

The President is playing very fast and loose with the idea of a budget surplus.

In 1998 there would have been NO budget "surplus" had the Social Security fund not taken in about $100 billion more than it paid out in benefits. And most estimates of the projected budget surpluses of the next 15 years conclude that about 70.3 percent of the total will be from surplus Social Security funds. All of the surpluses generated by Social Security should be used to strengthen and improve the program. What Clinton really is saying is that he wants to divert part of Social Security’s surplus to projects having nothing to do with the program itself.

It was not until the late 1960’s that money collected for Social Security was counted as part of the Federal Budget. It was and still is a separate Trust Fund, which can only be used for one purpose. Lyndon Johnson started counting the Trust Fund as part of the budget in order to make Viet Nam war expenses look like a smaller portion of the budget than they actually were.



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