Social Security's Surplus Disappearing Fast in Downturn

Time on Yahoo ^ | 4/10/09 | Justin Fox

[NormsRevenge]

Federal budget worrywarts (myself included) have been fretting for years about the arrival of the Dread Fiscal Year 2017, when Social Security was projected to start becoming a drag on federal finances.

Well, no need to worry about 2017 any more. Thanks to the worst economic downturn since the 1930s, the moment of reckoning is already almost here: According to both the budget proposed by the White House in February and projections issued by the Congressional Budget Office (CBO) in March, Social Security benefits ($659 billion, according to the CBO) will exceed payroll taxes ($653 billion) in fiscal 2009 for the first time since 1984.

Payroll tax receipts generally hold up much better in recessions than income taxes, but job losses have been so severe that the CBO expects them to decline slightly from 2008, while benefits rise almost 9% because of cost-of-living adjustments and the beginnings of the baby boomer retirement wave. (See five reasons for economic optimism.)

If you count the $17 billion in income taxes expected to be paid on Social Security benefits, the system will still manage to provide a slight surplus for federal coffers in fiscal 2009. But from 2010 through 2012 there are small projected deficits, and after heading back into the black from 2013 to 2015 the program will become a growing drain on federal finances after that, projects the CBO.

[org.whodat]

What surplus???? LOL

[blueyon]

Well maybe some of the BAIL OUT money could go to cover the checks for the elderly. They deserve it. Oh h*ll, Obie would not want to do that.

[11th Commandment]

Now someone is just being a little too negative. Madoff spent all the money on boats, planes cars and homes. Our trusted federal government has safely locked all those t-bills in a safe location in Maryland.

We'll just stroll down there, pick up a few billion in T-Bills, cash them in, and Sazam! Social Security Paid for...

BTW I'm being sarcastic

[briarbey b]

It’s the biggest ponzi scheme in the entire history of Earth.
****

Dang!! and I thought I was the only goof-ball who could see that! Keep wondering why they are hammering Madoff...they probably gave him the idea!!

What am I thinking..they are hammering Madoff because they didn’t get their big cut.

[briarbey b]

My wife and I don’t plan on SS income for our retirement. It will be like winning the lottery if we get any...
****
Same here but am also thinking it will be time to put a big push on euthanizing...compassionately of course...for us old folks who soon will be a drain on the system.
You can talk the American public into ANYTHING. It’s been proven.

[george76]

no need to worry about 2017 any more

[BIGLOOK]

Hmmm.....As a lifetime involuntary contributer to a governmentally planned and guaranteed pension plan, I'm curiously unsurprised.

Are we talking Lotto or foreign aid?

[SunkenCiv]

I’m just glad the SS trust fund is so much better than personally directed retirement acc’ts. /sarc

Thanks BL.

[SunkenCiv]

Whoops, and thanks geo.