It has been contended that Social Security is going bankrupt. This year is going to be a mark in favor of that viewpoint. The tax income the Social Security Administration takes in this year could be less than they are due to shell out. It also is not the first time it’s occurred. The SSA was subject of a lot of turmoil in the 1980s. There is a trust fund that Social Security puts the additional money into, which is how they’ll cover the loss.
Spending will exceed income by Social Security
According to the Los Angeles Times, the Social Security Administration will spend more than it will earn this year. The trustees of Social Security and Medicare released a report on Thursday, August 5, that reveals Social Security has more payments for making to Social Security recipients than funds it is due to accumulate by the end of 2010. After the new health care reform bill passed, Medicare was expected to stay solvent until 2029. Medicare had previously been given until 2017 before it fell into insolvency. More incentives and regulations are expected to stave off Medicare’s impending demise.
Social Security can be raiding their trust fund
The Social Security Administration keeps a trust fund in case of these instances. Tax income that’s left over after expenditures goes into the trust fund. In case of a shortfall, that’s what the fund is there for. The fund itself was created for exactly this purpose. According to the New York Times, the Social Security Trust Fund is not in danger of running out until 2037. The Social Security commissioner, Michael Astrue, says according to the numbers the Social Security Administration will nevertheless be able to meet at least 75 percent of their obligations.
Who will be Peter with so many Paul’s?
Social Security depends on tax revenue. The fewer individuals that are working, the fewer dollars it receives. As people live longer lives, the amount that has to be paid out increases, and therefore so do the obligations the SSA has to meet. This specific Social Security shortfall won’t affect people’s benefits, but the next one might.
Further reading
nytimes.com/2010/08/06/us/politics/06benefits.html
latimes.com/news/nationworld/nation/wire/sc-dc-0806-social-security-20100805,0,6306255.story
No comments:
Post a Comment