Reply #27: Yes - the trick the GOP is using is the same FIT vs payroll tax one the [View All]

[papau]

media allowed them to sell for the Bush tax cut for the rich.

The monies in 2001 that the FIT collects did not cover general expenses, but the tax cut was to the FIT rates only, and slanted to the rich because "the poor/middle class do not pay much FIT", while the payroll tax that provided the surplus could not be reduced because that would threaten the fiscal health of the Social Security System (how the media could whore like this and sleep at night I do not know).

In any case, when payback of the bonds is discussed "we are all one family- there are no real Soc Sec Assets because what the FIT owes is what the payroll tax owns - so it nets to zero"

So to give a better answer to your question:

SS specific accounting exists when doing tax refunds for FIT, but does not exist when Soc Sec needs FIT to raise rates to get additional cash to payoff some of those bonds.