REAGAN: Social Security, let’s lay it to rest once in for all…Social Security has nothing to do with the deficit. Social Security is totally funded by the payroll tax levied on employer and employee. If you reduce the outgo of Social Security, that money would not go into the general fund to reduce the deficit. It would go into the Social Security trust fund. So Social Security has nothing to do with balancing the budget or erasing or lowering the deficit.
A number of right-wing politicians and corporate CEOs are demanding that Congress and the President agree to cuts to Social Security along with reductions in the corporate tax rate as part of a “Grand Bargain.”
These conservatives who are making this demand should heed the words of their icon, former President Ronald Reagan. In the 1984 presidential debate, Reagan — the most right-wing president in his generation — debunked the lie that Social Security adds to the debt: