OBAMA's Trojan Horse - No, He Won't Cave! - by David Corn

[pinto]

44. Ah geez. I didn't "weasel & worm, distort & evade, twist & torture". I simply reposted SSA statement

I think going to the source is always a good practice. We can all make up our own minds on the value, impact or long term results of legislation.

I think petty name calling adds nothing to a conversation. Suggest you direct your outrage elsewhere, not at me. Thanks.

For what it's worth, the Congressional act was designed to be a temporary stimulus. And yes, it was designed to be repaid from the General Fund. From the link you provided -

Updated February 21, 2012

Workers will see less taxes deducted from their paychecks for Social Security. For the years 2011 and 2012, Congress has legislated a temporary payroll tax holiday designed to put more money into the hands of American workers.

Temporary Reduction in the Social Security Tax Rate

For 2011 and 2012, employees will pay 4.2% of their wage earnings for the Social Security tax, instead of the normal 6.2% rate. Employers still pay the full 6.2% rate.

Self-employed persons, who pay both halves of the Social Security tax through the self-employment tax, will pay a combined rate of 10.4% (the employer's 6.2% plus the employee's 4.2% rates).


What Happens to the "Missing" Social Security Funds?

To prevent Social Security from losing tax revenue, Congress mandated that revenues be transferred from the general fund to the Social Security trust funds to make up for the tax reduction. This is provided for in section 601 of the Tax Relief Act, which reads in part, "There are hereby appropriated to the Federal Old-Age and Survivors Trust Fund and the Federal Disability Insurance Trust Fund established under section 201 of the Social Security Act (42 U.S.C. 401) amounts equal to the reduction in revenues to the Treasury by reason of the application of subsection (a). Amounts appropriated by the preceding sentence shall be transferred from the general fund at such times and in such manner as to replicate to the extent possible the transfers which would have occurred to such Trust Fund had such amendments not been enacted."

Implementing the Payroll Tax Holiday

The Internal Revenue Service has directed employers to implement the lower 4.2% Social Security tax rate paid by employees no later than January 31, 2011. Additionally, employers are supposed to refund to their employees any excess tax withholding if they were using the old 6.2% rate during January; the IRS has instructed employers to refund the difference no later than March 31, 2011.

Self-employed persons pay their Social Security tax through estimated tax payments. Self-employed workers may utilize the lower Social Security tax rates when calculating their tax payments.

http://taxes.about.com/od/payroll/a/Reduced-Social-Security-Withholding-For-2011.htm