Sick and getting sicker, Social Security will run at a deficit this year and keep on running in the red until its trust funds are drained by about 2037, congressional budget experts said Wednesday in bleaker-than-previous estimates.So what did the Republicans and Democrats agree to last month? To cut SS payroll taxes so even less money will be coming in to pay these benefits. I guess the plan is to borrow the money from the Chinese.
The massive retirement program has been suffering from the effects of the struggling economy for several years. It first went into deficit last year but had been projected to post surpluses for a few more years before permanently slipping into the red in 2016
This year alone, Social Security will pay out $45 billion more in retirement, disability and survivors' benefits than it collects in payroll taxes, the nonpartisan Congressional Budget Office said. That figure nearly triples — to $130 billion — when the new one-year cut in payroll taxes is included.
Wednesday, January 26, 2011
Social Security now running permanent deficits
Another unsustainable government boondoggle. It now appears that because government spent all of the SS tax money that was collected (and hid even bigger government deficits for years) that so much money is now being dispersed and so little being collected that SS will now be contributing to our ongoing $1.5 trillion dollar deficits. Of course this should be front page news and the media should be going after politicians about how they are going to resolve this without millions of elderly being thrust into poverty. But that is exactly what will happen, these politicians will not do anything to fix this until it blows up. I actually believe this is a two edged sword in that as government reneges on its promises large central government will hopefully be discredited. If you are counting on SS you are going to be disappointed.