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However, most of the time, the amounts are unequal. When the baby boomers retire, they will require more money than the payroll tax generates, so to make up for this, the American government has years where it generates more in payroll taxes than it needs to spend on beneficiaries. This excess goes into a Trust Fund. The Trust Fund grows each time there is a yearly surplus. Later, when there are years where the beneficiaries require more money than the payroll taxes provide, the government can take money from the Trust Fund to make up the difference. But what does the government do with this money? It spends it...
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