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The mishandling of Social Security funds has been going on since the mid-1980s. As soon as the surpluses, resulting from the 1983 payroll tax hike, first began to flow into the Treasury, politicians from both political parties began using the money like a giant slush fund. At that time, it would be at least 30 years before the funds would actually be needed for Social Security, so politicians developed the bad habit of “temporarily borrowing” the money and using it for non-Social Security purposes. That bad habit never was broken, and every dollar of the $2.5 trillion in surplus Social Security revenue, generated by the tax hike, has been spent, leaving no real assets in the trust fund.

Senator Daniel Patrick Moynihan of NY even introduced legislation in early 1990 to repeal the 1983 payroll tax increase

Some members of Congress were outraged by the practice and tried to nip this misuse of Social Security revenue in the bud. (more…)

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dos. Relatives and buddies

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BankThese financing was a well-known resource offinance to own advertisers. (more…)