One of the points George Bush makes about the Social Security System is that the trust fund to which Americans have paid $1.5 trillion into over the past 20 plus years is basically empty, spent by a series of mostly Republican Presidents.
Yet by making that claim Bush is treating the $429 Billion collected in his first three fiscal years and the $963 billion expected to be collected in the coming five fiscal years as tax receipts that don't have to be paid back, which in effect makes it a Trillion Dollar tax increase.
During Bush's first three years in office the administration has racked up $1,571 trillion in deficits (compared to $1.4 trillion in eight years for Clinton, $1.5 trillion in four years for Bush I and $1.9 trillion in eight years for Reagan).
While the Bureau of the Public Debt shows the annual deficit for the Bush Administration to range from $420 in 2002 to $595 Billion in 2004, the White House uses the excess Social Security receipts to bring the figure to a more "manageable" $413 Billion.
If Social Security wasn't running a surplus then the government would be forced to sell Treasury notes to fund the deficit, which would be required to be paid back. Instead the Social Security trust fund annually covers a large part of the deficit spending.
The Social Security Trust Fund was set up for the government to eventually pay back what it borrows but when Bush says "there is no "trust fund,'" one has to ask whether he is indicating the government will default on those obligations?
Get it? If there's no surplus then the government has to really borrow money which it really has to pay back. But with the surplus it can take the money and run by saying it's gone In effect, by operating this way, Bush was able to enact a $145 billion tax increase in 2004 and $429 billion over his presidency.
Apparently Bush is the one with "fuzzy math." The only question is, is anyone listening?
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