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Subject:  Re: Not everyone gets a tax rebate Date:  6/13/2001  9:12 AM
Author:  jscott27 Number:  153396 of 910563

> I would rather that money be used to pay down the national debt.
> and/or put into the Social Security system. By buying back US Govt.
> bonds, our nation would strengthen the dollar, provide for a better
> future, and re-secure our situation with the trade deficit. If our
> government were to reinvest the money in Social Security, I would
> sleep better at night knowing that my ward would have a brighter
> future.

First of all, there is a projected 5.6 Trillion dollar surplus, of which, 1.35 Trillion is being returned to tax payers (over 11yrs, if I recall correctly). Parts of the national debt (including the bonds that you talked about) have a PENALTY for early repayment and it is therefore not useful to retire them early.

Could some of the debt be retired more quickly? Probably. The problem is with the assumption that the politicians would use the money to repay debt rather than buy votes through various increases in spending programs or additional spending programs. I don't trust them with MY money, so I would rather just have it returned to me.

Also, unless you are just talking about paying back the "trust fund" of social security, then taking money from income tax revenues and applying them to SS is just a back door way to increase SS taxes. SS is supposed to be a separate program that pays for itself.

I also don't understand how letting the govt. keep more of my money will help the trade imbalance (please look up the recent article on the Fool sight about this figure) or strengthen the dollar. Maybe you have read some articles detailing this, but I haven't seen anything of the sort. Also, if by strengthening the dollar you mean increase the amount of foreign currency we can buy with one dollar, this usually increases trade deficit (makes our goods more expensive overseas and oversea goods less expensive here).

This is not intended as a flame. I am just questioning your assumptions and conclusions.

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