CBO: Social Security Now Officially Broke (Obamanomics)

National Review ^ | 1/26/11 | kevin Williamson

[pissant]

Today’s CBO report has some bad news about the deficit. But CBO has some really, really bad news about Social Security: It’s officially broke.

The CBO’s revenue/expenditure estimates now place the program in permanent deficit. There had been some hope that payroll taxes would recover sufficiently post-recession to put the program back into the black (the theoretical black) for at least a few more years, putting off the day of reckoning for an election cycle or more. No more: The new CBO estimates put Social Security in the red for as far as the eye can see.

But there’s a bit of camouflage attached: If you include the “interest” that the federal government “owes” the fictitious Social Security “trust fund,” then the program is in the black. Which is to say, if you think that borrowing another $1 trillion from the bond market to shift money from one government account to another government account makes the nation $1 trillion richer, then everything’s hunky-dory. But if you compare the program’s tax income to its benefit outlays, without the “interest” owed, as CBO does, what you get is deficits from this year forward to 2021 of $45 billion, $30 billion, $28 billion, $30 billion, $31 billion, $33 billion, $44 billion, $59 billion, $77 billion, $98 billion, and $118 billion — by my always-suspect English-major math, about six-tenths of a trillion dollars in the hole.

[ridesthemiles]

Geee- Sharron Angle was right & Dirty Harry Reid was wrong.

I hope the Nevada Republicans jump Harry for his statements during the campaign.

He kept saying ‘Social Security isn’t going to have any problems until about 2035, & we should all stop worrying about it”.

Now, only 26 days into 2011 & NObama cut the SS taxes for EMPLOYEES by 2%. Employers pay the old rate, so when filing your deposits, it is no longer ‘matching funds”.

It is now 4.2% for the EmployEE & 6.2% for the EmployER.

How long before that shortage of deductions & deposits makes things really bad??

[ridesthemiles]

The age of 65 is changing—up a month at a time, every year.

When I turned 65, I had to wait until 65 & 7 months, I think.

[Ruy Dias de Bivar]

***No worries mate, just find the key to the lockbox.***

Here is the promise from 1964!

http://www.ssa.gov/history/ssa/usa1964-2.html

Self-Supporting

“The program is designed so that contributions plus interest on the investments of the social security trust funds will be sufficient to meet all of the costs of benefits and administration, now and into the indefinite future—without any subsidy from the general funds of the Government. Both the Congress and the Executive Branch, regardless of political party in power, have scrupulously provided in advance for full financing of all liberalizations in the program.”

And here is where YOUR money went! Read and weep!

http://www.socialsecurity.gov/OACT/ProgData/fundFAQ.html#n4

[April Lexington]

Fear not, my fellow Americans. Your Social Security checks will always show up in time in your mailbox. Unfortunately, you will need six or eight months of them to buy a loaf of bread...