We keep quietly kicking the can down the road. The Congressional Budget Office released new projections concerning Social Security funding late last week.
From Investors Business Daily…
The nonpartisan budget scorekeeper released the estimates Tuesday as part of broader economic and budget forecasts. CBO expects the trust fund to peak in 2018 and decline to $2.7 trillion in 2022 — a full $1 trillion less than Social Security’s own actuaries predicted last year.
Considering the federal government keeps running up yearly tabs of well over $1 trillion a year … what can we expect?
Under current law, once the trust fund is gone, Social Securi ty could only pay 78% of benefits. Since older retirees and the disabled would be protected, new retirees would face much deeper cuts to a benefit that is not especially generous to begin with.
The average retired worker received a $1,200 monthly benefit last year before Medicare premiums were subtracted.
Social Security’s earlier reckoning day gives people less time to set aside savings to make up for what the program can’t afford.
Thanks a lot.
Loading ...
Do I smell another Øbama bailout coming (with the associated increase in our national debt), or another decrease in benefits?
Or (most likely), both?
Just why does the Social Security tax stop at $107k?
Good question JBS, I have asked that question a number of times. If you made more than $107K would you not want to get some extra cash? BTW, our Congressmen make more than $107K.
SS has been severely perverted by giving it to every fool with a sore toe who doesn’t want to work.
It would help a little if instead of the tax cuts being Social Security tax cuts they were Income Tax cuts! Not much grant you but a little…. once again stealing from the SS fund for the general fund.
Administration has found reasons for funds to be pulled away from Social Security toward other ends, but this may prove dangerous for a number of reasons. The borrowing that has taken place from Social Security has created a substantial government liability to the fund. Many point to the enormous general deficits and argue, justifiably, that the federal government may not be able to honor its commitment to Social Security.
Even if the government is able to repay what it has borrowed, however, this does not address the true danger. As the government continues to shift money between the two funds, the delineation between Social Security and other programs will become muddled and distort funding priorities. This was not the intention of the creators of Social Security when they made provision for a distinct trust fund and a separate revenue form in the payroll tax.
Should the government wish to continue to ignore the intended autonomy of the Social Security trust fund, it should take this policy stance to its natural end: Social Security revenues and liabilities should be pooled into the general budget (http://bit…