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 will be less than they are due to shell out. It also is not the very first time it’s happened. The 1980s saw comparable trouble with the SSA. There is a trust fund that Social Security puts the extra money into, which is how they’ll cover the loss.
Social Security payments to exceed income
The Social Security Administration will take in less for this year than it is due to spend, as outlined by the Los Angeles Times. The trustees of Social Security and Medicare released a report on Thursday, August 5, that reveals Social Security has more payments to make to Social Security recipients than funds it is due to obtain 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 estimated to lapse into critical condition by 2017. The projected bankruptcy of Medicare is thought to be put further off with incentives and regulations aimed at streamlining the program.
Social Security – The ultimate trust fund baby
The Social Security Administration keeps a trust fund in case of these instances. Anything left over after expenditures gets put in the trust fund. Any shortfalls that occur are covered by the trust fund. That’s why it was created. The Social Security Trust Fund is projected to run out by 2037, according to the New York Times. The Social Security commissioner, Michael Astrue, says as outlined by 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?
Tax revenues are how Social Security is funded. If fewer individuals work, less cash comes into the equation. 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.
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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