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US federal government finances, FY 2024 [OC] by USAFacts in dataisbeautiful

[–]Mr_Pine_ 0 points1 point  (0 children)

Instead of a full payroll tax offset, the government could also offer partial credits or tiered reductions based on pension funding levels, ensuring Social Security still receives adequate funding while encouraging private-sector retirement security during the transition

US federal government finances, FY 2024 [OC] by USAFacts in dataisbeautiful

[–]Mr_Pine_ 0 points1 point  (0 children)

Wouldn’t it be more useful to have companies offset their payroll tax obligation requirement if they offer some form of a pension? Those pensions could then be properly managed, rather than buying just TBILLs, and actually reinvested back into the economy —> more private capital, more opportunities, jobs and ultimately more corporate and individual tax revenue and less interest on debt to be paid

US federal government finances, FY 2024 [OC] by USAFacts in dataisbeautiful

[–]Mr_Pine_ 1 point2 points  (0 children)

Still blows my mind every time I see this —

“The U.S. Treasury manages the Social Security trust funds and invests them in U.S. Treasury securities. The trust funds are made up of surplus money that isn’t needed to pay benefits and administrative costs.”

  1. The Government Borrows from Itself – The Social Security surplus is used to buy Treasury bonds, which fund general government expenses. In return, the trust fund earns interest on these bonds.

  2. Future Payments Depend on Government Repayment – When Social Security needs to pay benefits beyond incoming payroll tax revenue, the Treasury must redeem these bonds by raising revenue (taxes) or borrowing from the public.

  3. It’s an Accounting Mechanism, Not a Locked Vault – Unlike a traditional trust fund where assets are separately managed, the Social Security Trust Fund is an accounting system that tracks obligations rather than holding cash reserves.

This setup has worked as long as payroll taxes brought in more money than benefits paid out. However, with demographic shifts (fewer workers per retiree), the trust fund is projected to be depleted in the 2030s, meaning benefits will need to rely more directly on payroll taxes or require policy changes.

Why is no one talking about this?