Interest Income On Trust Fund Funds Essay

1434 Words Dec 7th, 2016 6 Pages
Since 1997, the OASDI program have always placed a requirement for their workers and their employers and self-employed persons to pay taxes on every earning to cover jobs up to the annual taxable maximum. Amounts are automatically adjusted as wages continue to rise. There are two separate trust funds that funds are placed in; the OASI Trust Fund and the DI Trust Fund. All the money that is received by the trust funds is usually used to pay the benefits and operating expenses of the program. If there is expenses or increments not needed they are automatically invested in interest-bearing securities. These interest-bearing securities are guaranteed by the U.S. Government. The income from trusts fund income includes all amounts that are transferred from the general fund of the U.S. Treasury, income from the taxation of benefits, and interest on invested assets of the funds. Transfers from the general fund include payments for gratuitous military service wage credits and for limited benefits to certain very old persons who qualify under special insured status requirements. Interest income on trust fund assets is derived from securities guaranteed by the U.S. Government.
There is a schedule of current and future tax rates designed to produce sufficient revenues, together with other revenues that are used to finance the program over the long range is set forth in the law. This schedule also specifies what portion of total revenues collected is to be allocated to each…

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