WASHINGTON - Sick and ill get, Social Security deficit this year and continues to operate in the red until the trust funds are drained by about 2037, the congressional budget experts said on Wednesday to darker than previous estimates.
The massive retirement program has suffered from the weakened economy in recent years. The first time I went into deficit last year but was expected to surplus after a few years before finally falling into the red in 2016.
This year alone, Social Security will pay U.S. $ 45 billion supplementary pension, disability and survivors' than it collects payroll taxes, independent Congressional Budget Office said. This figure almost triples - 130 billion U.S. dollars - when the new year to cut payroll taxes are included.
Congress has promised to rebuild the lost income tax cuts, but it is hardly good news, is to increase the federal budget deficit. In another sobering assessment, said the office of the Congress government red ink this year will amount to 1.5 billion, mainly in the history of the United States.
Over 54 million Americans receive Social Security benefits averaging $ 1,076 per month.
The outlook for the program became more acidic as the nation struggled to recover from the worst economic crisis since Social Security was adopted during the Great Depression. In the short term, Social Security suffers from a weak economy that is in arrears of pay and benefit claims increase. In the long term social security will be challenged by the growing number of baby boomers' pensions and to claim benefits.
The deficit is added to an urgent need to improve the social economy. Most of the last 30 years, the program is to run a substantial surplus, which has borrowed the government to use in other programs. Now social security is running deficits, the federal government should find money elsewhere to help pay benefits.
"As long as Social Security surpluses, politicians could delay the need for the program," says Andrew Biggs, a former deputy commissioner at the Social Security Administration, now a resident scholar at the American Enterprise Institute. "Now that the system runs deficits, it simply becomes clear that we must act on the reform of social security."
Barack Obama said in the State of the Union speech Tuesday night that he wanted to "strengthen the mutual establishment of social security for future generations."
The President has not taken the recommendations of the debt, appointed last year, one of which, by gradually raising the retirement age 1967-1969, the next 65 years.
But Obama has set some benchmarks for making Social Security more solvent.
"We must do so without jeopardizing current retirees, the most vulnerable or disabled, without reducing benefits for future generations and without exposing the incomes of Americans guaranteed retirement to the whims of the stock market," Obama said .
The program was funded by a tax of 6.2 percent of payroll paid by workers and employers. In December, Congress approved a reduction in taxes each year for workers at 4.2 percent. The loss of income must be paid to Social Security from general revenue, which means they will join the growing national debt.
Social Security has built a surplus of $ 2500000000000 withdraw from the program last renovated in 1980. The benefits will be safe until the money runs out. This should be 2037 - unless Congress acts in the meantime. At that time, Social Security payroll taxes enough to collect and pay about 78 percent of benefits under the Social Security Administration.
The surplus of $ 2.5 million, however, has been paid in recent years by the federal government and spent on other programs. In return, the Treasury Department has issued bonds to social security, guaranteeing repayment, with interest.
"Contributions of Social Security will not pay for expenses, it must come from elsewhere," said Eugene Steuerle, a former Treasury official who is now a member of the Urban Institute. "We can go through lengthy discussion about whether she was owed money by the money or not, but it does not solve the simple fact that it has to come from somewhere. "
Social Security advocates are adamant that the program will be refunded, as the United States government to reimburse other funds investing in U.S. Treasury bonds.
"The 'relationship, which is backed by government bonds, and the faith and credit of the United States government," said Sen. Bernie Sanders, I-Vt. "It 's the same faith and credit, which allows us to borrow from the rich countries and China and others. As you know, the history of this country, the United States have not less them against the penny creditor. "
The massive retirement program has suffered from the weakened economy in recent years. The first time I went into deficit last year but was expected to surplus after a few years before finally falling into the red in 2016.
This year alone, Social Security will pay U.S. $ 45 billion supplementary pension, disability and survivors' than it collects payroll taxes, independent Congressional Budget Office said. This figure almost triples - 130 billion U.S. dollars - when the new year to cut payroll taxes are included.
Congress has promised to rebuild the lost income tax cuts, but it is hardly good news, is to increase the federal budget deficit. In another sobering assessment, said the office of the Congress government red ink this year will amount to 1.5 billion, mainly in the history of the United States.
Over 54 million Americans receive Social Security benefits averaging $ 1,076 per month.
The outlook for the program became more acidic as the nation struggled to recover from the worst economic crisis since Social Security was adopted during the Great Depression. In the short term, Social Security suffers from a weak economy that is in arrears of pay and benefit claims increase. In the long term social security will be challenged by the growing number of baby boomers' pensions and to claim benefits.
The deficit is added to an urgent need to improve the social economy. Most of the last 30 years, the program is to run a substantial surplus, which has borrowed the government to use in other programs. Now social security is running deficits, the federal government should find money elsewhere to help pay benefits.
"As long as Social Security surpluses, politicians could delay the need for the program," says Andrew Biggs, a former deputy commissioner at the Social Security Administration, now a resident scholar at the American Enterprise Institute. "Now that the system runs deficits, it simply becomes clear that we must act on the reform of social security."
Barack Obama said in the State of the Union speech Tuesday night that he wanted to "strengthen the mutual establishment of social security for future generations."
The President has not taken the recommendations of the debt, appointed last year, one of which, by gradually raising the retirement age 1967-1969, the next 65 years.
But Obama has set some benchmarks for making Social Security more solvent.
"We must do so without jeopardizing current retirees, the most vulnerable or disabled, without reducing benefits for future generations and without exposing the incomes of Americans guaranteed retirement to the whims of the stock market," Obama said .
The program was funded by a tax of 6.2 percent of payroll paid by workers and employers. In December, Congress approved a reduction in taxes each year for workers at 4.2 percent. The loss of income must be paid to Social Security from general revenue, which means they will join the growing national debt.
Social Security has built a surplus of $ 2500000000000 withdraw from the program last renovated in 1980. The benefits will be safe until the money runs out. This should be 2037 - unless Congress acts in the meantime. At that time, Social Security payroll taxes enough to collect and pay about 78 percent of benefits under the Social Security Administration.
The surplus of $ 2.5 million, however, has been paid in recent years by the federal government and spent on other programs. In return, the Treasury Department has issued bonds to social security, guaranteeing repayment, with interest.
"Contributions of Social Security will not pay for expenses, it must come from elsewhere," said Eugene Steuerle, a former Treasury official who is now a member of the Urban Institute. "We can go through lengthy discussion about whether she was owed money by the money or not, but it does not solve the simple fact that it has to come from somewhere. "
Social Security advocates are adamant that the program will be refunded, as the United States government to reimburse other funds investing in U.S. Treasury bonds.
"The 'relationship, which is backed by government bonds, and the faith and credit of the United States government," said Sen. Bernie Sanders, I-Vt. "It 's the same faith and credit, which allows us to borrow from the rich countries and China and others. As you know, the history of this country, the United States have not less them against the penny creditor. "