Posted on 01/27/2011 3:31:36 AM PST by tobyhill
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.
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.
Congress has promised to replenish any lost revenue from the tax cut, but that's hardly good news, either, adding to the federal budget deficit. In another sobering estimate, the congressional office said government red ink this year will increase to $1.5 trillion, the most in U.S. history.
(Excerpt) Read more at foxnews.com ...
This is really bad. The politicians can no longer rob the SS trust fund. It is an expense for the first time. Whatever will they do?
Isn’t the trust fund essentially empty now? Doesn’t it just consist of IOU’s which the Govt. would have to borrow money to cover? It’s essentially a pay as you go system that we don’t have the cash flow to cover.
Look for retirement age to be 75 while welfare recipients and Union workers along with Federal employees keep taking from the coffers.
And nary a word is spoke about the millions of acres of land and other property the gov’t owns, which could sold to approved buyers to help get us thru these times. But Hilary can give 500 millon to Mexico.
had been projected to post surpluses for a few more years before permanently slipping into the red in 2016.
Hahahahaha
Oh I’m sure it will UNEXPECTEDLY run dry long before 2037.
The SS fund is empty right now.
2037 is the final year they think they can bamboozle us.
Yes it’s empty now, filled with bonds that the government wrote to itself. To refill it, they’ll have to borrow private money to repay those bonds.
It’s all borrowed money.
That wasn't supposed to begin until 2017, but thanks to Obama's brilliant leadership [sic], it started last year. So in a practical sense, the whole 2037 concept is meaningless. Whether there is some IOU sitting in the Social Security vault or not, the money still will come from the General Fund.
At this point, all the government can do to help itself is to begin rationing (i.e. denying) health coverage for retirees. And if you recall back during the 2008 campaign, Obama lectured us that 80% of America's total health care costs go towards those who are 65 and older, and that he was going to reduce the cost of health care. Heck, even a Democrat should be able to figure that one out.
UNEXPECTED?????
UNEXPECTED?????
Like writing yourself a check and putting it in your own account.
An unsharpened pencil...pointless.
First of all they could quit adding millions of young people who don’t like to work to the rolls for a variety of excuses, including pot heads with headaches requiring “medical marijuana”.
Then they could take all Medicare beneficiaries who have their own insurance and make that insurance primary and SS secondary. Medicare is a big give away to insurance companies because once a person turns 65 all they pay in benefits is 20% of what Medicare “authorizes”.
2037? How?
Social security went into deficit last year. That means their broke. Projected to post surpluses? Based on what? More payroll taxes while more and more people get laid off?
2011 payout will be $45,000,000,000 more that it collects.
The math doesn’t work.
They are effectively sending out IOU’s.
It's getting to the point of being an embarrassment to proclaim being a voter any more.
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