Doom, despair, and a guarantee of fear and loathing has been forecast for Social Security for a long time. For this year, they’ll be right. The tax income that the Social Security Administration takes in this year could be less than they’re due to shell out. It isn’t the first time, either. The 1980s saw comparable trouble with the SSA. Social Security keeps a trust fund where it holds all funds, and shortfalls are exactly what the fund is there to attempt to counter.
Social Security won’t cover the pay-outs
As outlined by the Los Angeles Times, the Social Security Administration will spend more than it will earn this year. The board of trustees for Social Security and Medicare have reported, as of August 5, that the tax income will be less than their due to pay out by the end of 2010. The health care reform bill will purportedly streamline Medicare, and it’s expected to stay solvent until 2029. Estimates before the bill passed gave Medicare until 2017. New incentives and regulations are expected to streamline Medicare spending without compromising how much it delivers to citizens receiving benefits.
Social Security could be raiding their trust fund
The Social Security Administration maintains a trust fund for itself. Anything left over after expenditures gets put in the trust fund. Any shortfalls that occur are covered by the trust fund. The fund itself was created for exactly this purpose. The Social Security Trust Fund, as outlined by the New York Times, is projected to run out by 2037. The Social Security Administration will still be able for making 75 percent of its payments if the numbers are accurate, according to the Social Security commissioner Michael Astrue.
Peter to Pay Paul!
Social Security depends on tax revenue. If fewer people work, less money comes into the equation. As people live longer, more has to be paid out. This specific Social Security shortfall won’t affect people’s benefits, but the next one might.
Discover more information on this subject
nytimes.com/2010/08/06/us/politics/06benefits.html
latimes.com/news/nationworld/nation/wire/sc-dc-0806-social-security-20100805,0,6306255.story
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