1、Congressional Research Service The Library of CongressCRS Report for CongressReceived through the CRS WebOrder Code 94-593 EPWUpdated September 8, 2003Social Security: Where Do Surplus Taxes Goand How Are They Used?Geoffrey KollmannDomestic Social Policy DivisionSummaryMost of the costs of the Socia
2、l Securityprogram are financed bythe payroll taxesworkerspayontheirwagesandself-employmentincome. Asmalleramountisfinancedby part of the income tax some recipients pay on their Social Security benefits. Thesetaxes are paid to the federal government and, along with other forms of revenue,becomepartof
3、thegovernmentsoperatingcashpool,commonlyreferredtoastheU.S.treasury. Oncereceived,theybecomeindistinguishablefrom othermonies received bythe government. The trust funds receive credit for these monies in the form of federalsecuritiesissuedtotheSocialSecuritytrustfunds. WhenmoreSocialSecuritytaxesare
4、received than spent, the extra money is not held in the trust funds, but remains in thetreasury. Instead, the “surplus” receipts are credited to the Social Security program byincreasing the amount of securities posted to the Social Security trust funds.Similarly, benefits are not paid from the trust
