For most of its 75-year history, the program had paid its own way through a dedicated stream of payroll taxes, even generating huge surpluses for the past two decades. But in 2010, under the strain of a recession that caused tax revenue to plummet, the cost of benefits outstripped tax collections for the first time since the early 1980s.
Now, Social Security is sucking money out of the Treasury. This year, it will add a projected $46 billion to the nation’s budget problems, according to projections by system trustees. Replacing cash lost to a one-year payroll tax holiday will require an additional $105 billion. If the payroll tax break is expanded next year, as President Obama has proposed, Social Security will need an extra $267 billion to pay promised benefits.
But while talk about fixing the nation’s finances has grown more urgent, fixing Social Security has largely vanished from the conversation.
“Now, Social Security is sucking money out of the Treasury. ”
In truth, Social Security is now presenting the Treasury with the IOU’s the Treasury gave the SSA in those years the SSA had a
surplus and the Treasury was sucking money out of the SSA.
Thanks, Marie. There hasn’t been a solvent SS Trust Fund since Lyndon Johnson was president.
This is a bigger Ponzi scheme than Madoff ever concocted.
worse #3 it’s an involuntary Ponzi scheme…