The Social Security System Goes Into Deficit

The Congressional Budget Office determined it will pay out more in Social Security benefits in 2010 than it will receive in taxes. Social Security benefits are paid to senior citizens that are retired and those with disabilities funded by a federal deducted tax from payroll. This has never happened before, and was predicted to not happen until 2016. The Social Security administration blames the current recession as the main cause for this deficit taking place. More than 15 million Americans are out of jobs. With less people working, there are less paychecks being taxed, and therefore, less revenue for the Social Security Administration. However, the administration says this will not affect benefits for 2010.

Since the 1980s, analysts have been trying to predict when the social security system would go into deficit. Most predicted it would take place somewhere between 2016 and 2020. Now we know it is happening now.

1 Comment on The Social Security System Goes Into Deficit

  1. Personally, I am not one of those who objects to paying taxes for Social Security, Medicare, and Medicaid. To those who do object, I think the phrase, “There but by the Grace of God go I.” bears repeating—often.

    It is unfathomable to me that so many people think that they will go through life without any bumps in the road or worse. We should all be grateful that our government has Social Security and other benefits to meet imperative needs. In order to support this benevolent “entitlement”, I believe a universal Social Security tax increase should be implemented into our tax obligations. I don’t see what is so terrible about sharing, what is so obviously, a benevolent tax.

    Mr. K

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