CBO: Social Security In The Red Now
(Via Hot Air) A surprise everyone saw coming:
The Congressional Budget Office said Wednesday that Social Security will pay out $45 billion more in benefits this year than it will collect in payroll taxes, further straining the nation’s finances. The deficits will continue until the Social Security trust funds are eventually drained, in about 2037.
Previously, CBO said Social Security would start running permanent deficits in 2016. In the short term, Social Security is suffering from a weak economy that has payroll taxes lagging and applications for benefits rising. In the long term, Social Security will be strained by the growing number of baby boomers retiring and applying for benefits.
Democrats warned, and will most likely blame, the payroll tax cut for employees that we got with extending the Bush Tax Cuts. Sure this may have accelerated the shortfall of Social Security, but the flaw was there to begin with. The CBO report spells out the DOOM we are facing. In fact, they don’t think that Unemployment will stay above eight percent past 2012.
This will now force us to deal with the problem that Democrats and Progressives have demanded that we keep kicking down the road. We no longer have a can to kick and the road has come to an end.
Guess who perdicted that magical 2037 Year Of Doom? Paul Ryan:
As currently structured, however, Social Security is going bankrupt and cannot fulfill its promises to future retirees. Without reform, future retirees face benefit cuts of up to 24 percent in 2037. Attempts to fix the problem without fundamental reform will excessively burden future workers and sacrifice U.S. prosperity.
He saw this coming even before this report came out and has been warning us for a year now. If you are a follower of Paul Ryan, then this is a surprise you saw coming.
If you haven’t studied Paul Ryan’s A Roadmap For America’s Future, then you are missing out on some good ideas. He’s been sounding the alarm and we now need to listen to what he has planned to fixed these problems.