CBO: Social Security Shortfall Comes Five Years Early

Social Security will will run deficits beginning this year, five years sooner than expected and will run in the red until its trust funds are drained by about 2037 according to a report from the Congressional Budget Office.

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 CBO said. That figure nearly triples to $130 billion when the new one-year cut in payroll taxes is included.

CBO estimates that, under current law, outlays for Social Security will reach $727 billion in 2011, or 4.8 percent of GDP. Over the next decade, spending for Social Security benefits will climb steadily as the nation’s elderly population grows and as average benefits rise. By 2021, CBO estimates, Social Security outlays will total $1.3 trillion, or about 5.3 percent of GDP. In that year, more than 71 million people will collect Social Security benefits.

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Andrew Briggs, a former deputy commissioner at the Social Security Administration who is now a resident scholar at the American Enterprise Institute told NPR that “so long as Social Security was running surpluses, policymakers could put off the need to fix the program. Now that the system is running deficits, it simply becomes clear that we need to act on Social Security reform.”

Read more at the link below.

CBO: Social Security Will Run Permanent Deficits

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  • Finally the CBO acting somewhat responsibly.

    When you reduce the worker FICA contribution from 7.65% to 5.65% — Golly, surprise, surprise (remember the Gomer Pyle character) just look at what you get. OMB and the 111th did their jobs all right!!! It seems the OMB numbers REALLY work (LOL). If this looks bad, just wait for the deficit surprises from the Obama health plan.

    The integrity of the OMB of this Administration lies in its politics, not in its due diligence. The CBO is hardly impartial. They are the investigative arm of Congress and right now control of Congress is divided so it is certainly less partial than it was during the 111th Congress.

  • Finally the CBO acting somewhat responsibly.

    When you reduce the worker FICA contribution from 7.65% to 5.65% — Golly, surprise, surprise (remember the Gomer Pyle character) just look at what you get. OMB and the 111th did their jobs all right!!! It seems the OMB numbers REALLY work (LOL). If this looks bad, just wait for the deficit surprises from the Obama health plan.

    The integrity of the OMB of this Administration lies in its politics, not in its due diligence. The CBO is hardly impartial. They are the investigative arm of Congress and right now control of Congress is divided so it is certainly less partial than it was during the 111th Congress.

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