The US government creates money, it neither has the money nor doesn't have money. It would be like you have a magic checkbook where you could write checks and they never bounce. If you had such a checkbook, how much money would you have? If someone offered to pay you in the money that you had previously created, would it have value to you? If yo took that payment, would you have more money? No, of course not. You have a checkbook where you can create all the money you want, you can never have more or less money. The only reason you'd need/ want money from anyone is that you realize if you keep writing checks that eventually the amount of money in circulation will rise. If it rises faster than the value of the nation's productivity you will create inflation. So taxing it's about having more money, it's about preventing inflation. Not that you care, but everyone else that uses the money you create does. So if you aren't careful, everyone will get really angry with you. There is a TT&L account that SS funds are deposited into, but that is simply for accounting purposes. The government uses those funds as the justification for the purchasing of securities with that money. The idea that the government could tax back money and set it aside, is silly. It would be the equivalent of taking a loan for $10,000 and spending it. Then at some point in the future, you get back the $10,000 and instead of paying back your loan, you deposit it in an account and claim you have $10,000 (ignoring the $10,000 debt). The reality is that you have an asset (the cash) of $10,000 and a liability for -$10,000 (the loan). That equals zero. But wait!! If you act right now, it gets even worse! Instead of the gov repaying the money (the gov created and taxed) back to itself (the gov), the gov takes the $10,000 and purchases securities from itself (the gov), then at some point in the future the gov creates more money to repay the debt and interest the gov created. This is a game of political semantics of the highest order. If the government can create the funds to repay the securities and the interest the gov created, why can't the gov just create the money and pay SS recipients and skip the purchase of treasuries? This is just a silly game politicians play with economically illiterate people so that it can pretend that it's being responsible. It's economic stupidity.