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CNSNews.com) – The Congressional Budget Office (CBO) reports that Social Security will effectively run a $45-billion deficit in 2011 and continue to run deficits totaling $547 billion over the coming decade.
The admission comes in the CBO’s semi-annual economic review that projects federal spending, debt, and economic growth. In the report, the CBO also examines the impact of projected economic performance on the trust fund that nominally funds Social Security.
“Excluding interest, surpluses for Social Security become deficits of $45 billion in 2011 and $547 billion over the 2012–2021 period,” the CBO reported.
This means that in order to pay benefits Social Security will need $45 billion more than it will collect in payroll taxes this year, and $547 billion more over the next decade.
However, the fund is not taking in enough money to pay out its obligations, nor will it for the foreseeable future, according to the CBO. Adding the interest owed by one government account – the general fund of the U.S. Treasury – to another – the Social Security trust fund – is merely an exercise in moving money from one part of the federal budget to another. It does not mean that there is extra money available to pay Social Security benefits.
In other words, Social Security is not taking in enough money in taxes to pay current or future benefits and instead will have to rely, in theory, on future federal borrowing to meet its needs.
Originally posted by Matrix Rising
reply to post by antonia
Taxes will not cover this because you will stifle an economy that's already in the tank with over 9% unemployment. So if you raise taxes in a global economy when the economy is hurting you will just make matters worse.