[[Social Security cannot indefinitely pay the current level of OLD AGE benefits with the existing payroll tax rate]]
Let’s put this in perspective-
We can afford to pay between $400 BILLION and $600 BILLION dollars every single year for illegals, but we can’t find the hundreds of billions that our government STOLE from SS?
There4 are still more people paying in to SS that are actually around to collect it in the end- (or at least all of what they payed in) so that would still mean a surplus (which apparently also gets stolen)-
“Is this Social Security’s worst financial report ever?
Far from it. In the late 1970s and early 1980s Social Security ran deficits. Trust fund insolvency loomed in July 1983. With mere months of solvency left, Congress acted to bolster finances on April 20, 1983. SSA still operates under the 1983 funding arrangement, generating surpluses every year since.”
http://www.marketwatch.com/story/exposing-the-social-security-solvency-hype-2013-06-12
“I keep hearing that Social Security is about to go broke. What do the numbers show?
The Trustees’ Report presents these data:
•Social Security has $2.73 Trillion in trust fund reserves.
•Social Security reserves are still growing and will continue to grow through 2020.
•Beginning in 2021, program costs are projected to exceed income, shrinking the trust funds.
•The trust funds will be exhausted in 2033, the same year projected in the 2012 report.
•After 2033, income will cover 77% of scheduled payments”
As stated before though, things can be done to ‘fix’ the problem before 2030 (some now think it will be solvent out till 2040 or so)
Sigh, here we go again. Why won't this meme die? It's wrong, and you are just making the problem worse by giving people the false hope there is an easy fix.
Read the rest of the thread. The government didn't steal anything from Social Security. They borrowed it, and are paying it back. This is nothing new, as the original legislation said: this is what the Secretary of Treasury shall do.
There4 are still more people paying in to SS that are actually around to collect it in the end- (or at least all of what they payed in) so that would still mean a surplus (which apparently also gets stolen)-
There are not enough payroll taxes being collected to pay benefits NOW, and withdrawals from the Trust Fund have begun. It started in 2010, thanks to the recession. At the moment, the Trust Fund is earning enough interest to keep growing despite the withdrawals, but that will end soon. And around 2034, the Trust Fund will be exhausted. By law, SSA must reduce benefits if they aren't given additional money.
As stated before though, things can be done to ‘fix’ the problem before 2030 (some now think it will be solvent out till 2040 or so)
I don't think you realize the magnitude of the problem. There are no easy fixes -- it's too late for that.
I'll again quote what the 2015 Trustee report says:
For the combined OASI and DI Trust Funds to remain solvent throughout the 75-year projection period: (1) revenues would have to increase by an amount equivalent to an immediate and permanent payroll tax rate increase of 2.62 percentage points (from its current level of 12.40 percent to 15.02 percent, a relative increase of 21.1 percent); (2) scheduled benefits during the period would have to be reduced by an amount equivalent to an immediate and permanent reduction of 16.4 percent applied to all current and future beneficiaries, or 19.6 percent if the reductions were applied only to those who become initially eligible for benefits in 2015 or later; or (3) some combination of these approaches would have to be adopted.
That's what has to be done NOW. If we wait until 2034, the tax increase (or the benefit cut) will have to be larger.
And even then, that only "solves" the problem until 2090. Presuming we reach that point, the problem will just occur again without a structural change -- it's a demographic problem we can't repeal.
Historically, the economic and demographic assumptions used by SSA have been too optimistic. An example: Back in the 80's, the SSA's assumptions forecast that the increase in payroll taxes (about 50%) would put Social Security back on solid footing until 2060.
Guess what: we aren't going to make it.
But, I'll reiterate: Social Security won't go "bankrupt". They must simply reduce benefits to whatever level can be sustained with the incoming payroll taxes. Currently, that's about a 21% reduction in 2034. But, the date generally gets closer and the reduction gets bigger every year.