This is not in dispute, although we could have a whole different discussion about the wisdom of limiting SSA "investments" to only treasuries.
I definitely agree with that. SS should be run like a real pension plan, and people should be allowed to opt out of it and invest directly themselves. Other countries are doing this now.
I'm glad we can agree on one point at least.
I think you know about it but are missing it, the federal government has a legal obligation to "invest" excess SSA revenue into the SSA "trust fund" (under current federal law), it's right there in the PDF you linked. They're just not accounting for that legal obligation when they report a "surplus".
I'm not sure how to put the fact that an excess of debt isn't the same thing as a surplus of cash any more simply than I already have but I'll give it one last shot; the national debt (intra-governmental holdings + public debt) as reported by the treasury increased every year under Clinton which clearly demonstrates a case of the former rather than a case of the latter. In my book reporting that to the public as a "surplus" is an attempt to deceive the public into believing that it's a case of the latter.
... and therein lies the point of contention my friend, that the federal government has redefined the meaning of surplus to include a scenario which involves an increase of outstanding debt, I (along with others more knowledgeable about accounting than I) don't agree with that definition, You apparently do,
so we'll have to agree to disagree.
Bush opted to give everyone a tax cut, arguing that we could afford one given the surpluses. Americans agreed and voted him in. But had the operating budget been budget been in surplus, it doesn't necessarily preclude a tax cut.
Just a minor point of order on this , Bush + Congress didn't cut taxes , he shifted them into the future since he continued to run a net operating deficit throughout his two terms, the hope was that the increased economic activity would generate sufficient revenues to offset the "cuts", didn't work out that way.
I often here the argument that "If the government really had a surplus, they would have paid down the SS debt," which is what you are arguing in your brackets
No it's not what I'm arguing in my brackets, what I'm pointing out there is the possibility that the federal government utilizes an actual surplus of cash to shore up it's unfunded future liabilities (which aren't limited to SS, since they also include Medicare and the other various federal pension funds), unfortunately federal law makes the "maneuverability" of this rather limited since in most cases it prohibits the federal government from purchasing marketable securities from external entities, I'm just assuming (hoping) there's some wiggle room in there somewhere that would allow for this.
Anywho, great talking to you and interesting conversation, hope you have an excellent weekend!