CBO: Social Security to begin running permanent deficits this year, not 2016 (Update: Second year running, Social Security in the red)

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    Jan 27, 2011 11:19 AM GMT
    http://www.cbsnews.com/stories/2011/01/26/politics/main7286861.shtml

    Sick and getting sicker, Social Security will run at a deficit this year and keep on running in the red until its trust funds are drained by about 2037, congressional budget experts said Wednesday in bleaker-than-previous estimates.

    The massive retirement program has been suffering from the effects of the struggling economy for several years. It first went into deficit last year but had been projected to post surpluses for a few more years before permanently slipping into the red in 2016

    This year alone, Social Security will pay out $45 billion more in retirement, disability and survivors' benefits than it collects in payroll taxes, the nonpartisan Congressional Budget Office said. That figure nearly triples — to $130 billion — when the new one-year cut in payroll taxes is included.


    And it gets worse, of course:
    http://www.theatlantic.com/business/archive/2011/01/us-budget-deficit-to-pass-15-trillion-this-year/70317/

    "Grim" doesn't seem to be a terrifying enough word to describe the budget outlook that the CBO released today. Oh, sure, we sort of knew this was coming--tax cuts are expensive if you don't find spending cuts to match. And yet the numbers still hit one like a punch to the gut. From a guy wearing brass knuckles. Wrapped around a roll of quarters. Shiny new quarters that you can't really afford to use for punching people, because you've got a $1.5 trillion budget deficit this year.

    What is there to say? This has got to stop? At this point, saying so feels sort of Job-like. Speciically, Job 14: "Man born of woman is of few days, and full of trouble. He cometh forth like a flower, and is cut down: he fleeth also as a shadow, and continueth not." It's absolutely true, of course, but it's kind of a downer. And no matter how often you say it, you know you're still going to die.

    It seems clearer and clearer that short of a near-death experience, no one is going to do anything about this problem. Our president spent over 5,000 words last night kind of noting, offhand, that we might have a problem, and then studiously avoiding proposing any serious solutions to the problem. Paul Ryan's response emphasized the problem, but not the ugly solutions: raise taxes, cut entitlements. And Michelle Bachman . . . well, what do you get when you cross a motivational speaker with an eighth grade social studies teacher? I'll tell you what you don't get: any serious proposals to fix our budget woes.

    The market is fully prepared to serve as judge, jury and executioner if we don't straighten up soon. We don't have to fix the budget right now--but we do have to develop a credible plan that both sides can actually commit to. Unfortunately, right now the only serious plan anyone seems to have is to put off making decisions, and hope that you'll be out of office when the day of judgement finally arrives.
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    Jan 27, 2011 2:24 PM GMT
    Lift the payroll tax cap and increase the SS tax by 1%. Problem solved. icon_rolleyes.gif
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    Jan 27, 2011 3:47 PM GMT
    Christian73 saidLift the payroll tax cap and increase the SS tax by 1%. Problem solved. icon_rolleyes.gif


    And then increase it again, and again and again and again. I'm sure no one will notice.
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    Jan 27, 2011 3:59 PM GMT


    Not necessarily so, Mock. Taxes that go up can also go down, as evidenced in the tax cuts made a few years ago. There's a large demographic retiring etc. Considering Americans living til 90 is about 1-3 percent...

    -Doug

  • rnch

    Posts: 11524

    Jan 27, 2011 3:59 PM GMT
    congress brought this problem on themselves by robbing the SS trust fund over and over and over.

    the issue is not with the social security trust fund. the issue is with fiscally corrupt politicians who passed on the tab for their over spending on future generations.

    icon_exclaim.gif
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    Jan 27, 2011 4:03 PM GMT
    rnch saidcongress brought this problem on themselves by robbing the SS trust fund over and over and over.

    icon_exclaim.gif


    This.
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    Jan 27, 2011 4:05 PM GMT
    mocktwinkie said
    Christian73 saidLift the payroll tax cap and increase the SS tax by 1%. Problem solved. icon_rolleyes.gif


    And then increase it again, and again and again and again. I'm sure no one will notice.


    They probably will notice the hundreds of thousands of senior citizens thrown into abject poverty if Ryan or Paul's plans were to be enacted.
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    Jan 27, 2011 5:19 PM GMT
    southbeach1500 said
    Christian73 saidThey probably will notice the hundreds of thousands of senior citizens thrown into abject poverty if Ryan or Paul's plans were to be enacted.


    Ah... the old liberal "grandma will be thrown into the gutter" phony argument again.. icon_rolleyes.gif



    Hmmm...well, some conservatives don't agree with SB. Quelle surprise, eh?

    https://fellowshipofminds.wordpress.com/2010/12/28/canary-in-coalmine-alabama-town-stops-pension-payment/


    Please read the ENTIRE article before engaging your keyboard. icon_rolleyes.gif
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    Jan 27, 2011 5:21 PM GMT
    southbeach1500 said
    Christian73 saidThey probably will notice the hundreds of thousands of senior citizens thrown into abject poverty if Ryan or Paul's plans were to be enacted.


    Ah... the old liberal "grandma will be thrown into the gutter" phony argument again.. icon_rolleyes.gif


    It's not a phony argument, and both plans will raise taxes on the middle class, close off opportunities for escaping poverty, and - of course - lower taxes on the very rich.
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    Jan 27, 2011 5:25 PM GMT
    I'm curious about the all-or-nothing approach. Instead of extending all the tax cuts which the gov't did recently, those tax cuts could have been extended but reduced by 30% or so.

    -Doug

    And Christian, I posted a link to a conservative site about exactly what you are saying. Sb is fibbing as usual.

    Here it is again:

    https://fellowshipofminds.wordpress.com/2010/12/28/canary-in-coalmine-alabama-town-stops-pension-payment/

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    Jan 27, 2011 5:27 PM GMT
    southbeach1500 said
    Christian73 said
    southbeach1500 said
    Christian73 saidThey probably will notice the hundreds of thousands of senior citizens thrown into abject poverty if Ryan or Paul's plans were to be enacted.


    Ah... the old liberal "grandma will be thrown into the gutter" phony argument again.. icon_rolleyes.gif


    It's not a phony argument, and both plans will raise taxes on the middle class, close off opportunities for escaping poverty, and - of course - lower taxes on the very rich.


    The government has been trying to get people out of poverty for decades. Trillions of dollars have been spent by the government to try to do this and it simply doesn't work.

    Oh.... and yes, "grandma will be thrown into the gutter" IS a phony argument. Remember when Giuliani took on welfare reform in NYC way back when.... nobody was thrown into the gutter, despite the loud squawks from the liberal hens of the time.


    Social Security and Medicare have taken millions of seniors out of poverty , so what are you rambling about.

    And, both poverty and homeless have increased dramatically since Guiliani's reforms. The NYC government also regularly buses homeless people out of here to places like Florida. This combined with the Recession has homelessness up 50% in New York City according to Fox News!

    homelessness-up-in-new-york-city-2010083

    Again, just because you believe in something doesn't make it true. Perhaps you still believe in the Easter Bunny. icon_rolleyes.gif
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    Jan 27, 2011 6:43 PM GMT
    southbeach1500 said
    Christian73 said
    And, both poverty and homeless have increased dramatically since Guiliani's reforms...


    ...due to the Democrats in Washington DC wrecking the economy.


    Do you click your heels together three times whenever you lie in hopes that will make it true?

    Financial crisis commission report out today says you're completely and utterly wrong in every way. icon_rolleyes.gif
  • rnch

    Posts: 11524

    Jan 27, 2011 7:27 PM GMT
    eliminating social security benefits is just a huff of hot air from the GOP/tea baggers, trying to sound "fiscally responsible". icon_rolleyes.gif

    they KNOW as do the democrats, that the most loyal, vocal voting block out there past the belt way, in the "Real World", is the Senior Citizens. icon_idea.gif

    hell hath no fury like seniors and the AARP when it comes to getting rid of social security benefits! icon_lol.gif
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    Jan 27, 2011 9:50 PM GMT
    Do ANY of you know how many IMMIGRANTS are on the SS dole for SSDI and SS that have NEVER paid a dime into it? Do you know HOW and WHO 'diagnosed' these ailments?
    Its sickening.
    It is a scam defined to the 'T'.
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    Jan 27, 2011 10:12 PM GMT
    rnch saideliminating social security benefits is just a huff of hot air from the GOP/tea baggers, trying to sound "fiscally responsible". icon_rolleyes.gif

    they KNOW as do the democrats, that the most loyal, vocal voting block out there past the belt way, in the "Real World", is the Senior Citizens. icon_idea.gif

    hell hath no fury like seniors and the AARP when it comes to getting rid of social security benefits! icon_lol.gif


    Nobody has suggested that we instantly get rid of it, but rather allow it to slowly die off for future generations.
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    Jan 27, 2011 11:42 PM GMT
    mocktwinkie said
    Christian73 saidLift the payroll tax cap and increase the SS tax by 1%. Problem solved. icon_rolleyes.gif


    And then increase it again, and again and again and again. I'm sure no one will notice.


    Get over it !!!! the higher income brackets have not been paying an equitable share, all they need to do is increase the income from which SS deductions are taken from the Current $98,000 to I believe the figure was $120,000. problem solved. Right now Baby boomers are on the 'heavy' side collecting, that phenomena will go away and level off again in about 20 or so years then it will be going more and more into the black. Everyone benefits from this, its the best thing going for Elderly Americans, you will need it someday too.

    Imagine where we'd be if we had gone along with the fool idea of investing in Wall street rather than keeping the SS government pool of funds, Don't change anything but increasing the amounts deductions are drawn from.
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    Jan 28, 2011 12:32 AM GMT
    You mean I may not see my S.S. income when I retire in 35+ years? Yay!!! icon_eek.gif

    Thank gosh I have other means of retirement income saved up.
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    Jan 28, 2011 12:39 AM GMT
    Columbusite saidYou mean I may not see my S.S. income when I retire in 35+ years? Yay!!! icon_eek.gif

    Thank gosh I have other means of retirement income saved up.



    There's no reason at all for you not to expect SS retirement, as several have suggested above, SS just needs an increase the upper limit from which SS is deducted and that solves the problem. SS is not a debt of the Government, it is funded by payroll deductions from citizens. Republicans need to keep their hands off the idea of privatizing, then you can expect to get SS along with your private retirement.
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    Jan 28, 2011 12:44 AM GMT
    realifedad said
    Columbusite saidYou mean I may not see my S.S. income when I retire in 35+ years? Yay!!! icon_eek.gif

    Thank gosh I have other means of retirement income saved up.



    There's no reason at all for you not to expect SS retirement, as several have suggested above, SS just needs an increase the upper limit from which SS is deducted and that solves the problem. SS is not a debt of the Government, it is funded by payroll deductions from citizens. Republicans need to keep their hands off the idea of privatizing, then you can expect to get SS along with your private retirement.


    Even so, I'm not going to depend entirely on S.S. to live off of when I retire. I mean, ANYTHING could happen and S.S. could go completely broke and then where would I be?

    It's just wise to plan ahead and not put all of your eggs in one basket; at least that's the way I see it and what my parents instilled in me. Diversify, man!!!
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    Jan 28, 2011 1:08 AM GMT
    southbeach1500 said
    Christian73 said
    southbeach1500 said
    Christian73 said
    And, both poverty and homeless have increased dramatically since Guiliani's reforms...


    ...due to the Democrats in Washington DC wrecking the economy.


    Do you click your heels together three times whenever you lie in hopes that will make it true?

    Financial crisis commission report out today says you're completely and utterly wrong in every way. icon_rolleyes.gif


    Nope, it says I'm correct.


    Apparently, reading comprehension is not your strong suit. icon_rolleyes.gif
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    Jan 28, 2011 1:11 AM GMT
    Columbusite said
    realifedad said
    Columbusite saidYou mean I may not see my S.S. income when I retire in 35+ years? Yay!!! icon_eek.gif

    Thank gosh I have other means of retirement income saved up.



    There's no reason at all for you not to expect SS retirement, as several have suggested above, SS just needs an increase the upper limit from which SS is deducted and that solves the problem. SS is not a debt of the Government, it is funded by payroll deductions from citizens. Republicans need to keep their hands off the idea of privatizing, then you can expect to get SS along with your private retirement.


    Even so, I'm not going to depend entirely on S.S. to live off of when I retire. I mean, ANYTHING could happen and S.S. could go completely broke and then where would I be?

    It's just wise to plan ahead and not put all of your eggs in one basket; at least that's the way I see it and what my parents instilled in me. Diversify, man!!!



    I certainly agree !!!! you are very smart to plan for your own income by saving now, Hope you didn't think I was suggesting you depend on SS only. you keep up what you've started and you'll have a good future.

    I was able to invest in real estate, then sell it and retire early, working toward something of my own as you are doing and you'll have no regrets with 'eggs in more than one basket'.
  • rnch

    Posts: 11524

    Jan 28, 2011 2:37 AM GMT
    [quote][cite]Christian73 said...Apparently, reading comprehension is not your strong suit. icon_rolleyes.gif[/quote]

    or logic comprehension!


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    Jan 28, 2011 3:35 AM GMT
    southbeach1500 said
    TropicalMark saidDo ANY of you know how many IMMIGRANTS are on the SS dole for SSDI and SS that have NEVER paid a dime into it? Do you know HOW and WHO 'diagnosed' these ailments?
    Its sickening.
    It is a scam defined to the 'T'.


    Immigrants? Or illegal immigrants?
    Immigrants, green card holders
  • musclmed

    Posts: 3274

    Jan 28, 2011 4:17 AM GMT
    TropicalMark saidDo ANY of you know how many IMMIGRANTS are on the SS dole for SSDI and SS that have NEVER paid a dime into it? Do you know HOW and WHO 'diagnosed' these ailments?
    Its sickening.
    It is a scam defined to the 'T'.


    I thought you had to a legal resident to get the above.?

    As for ssdi there are some who would obviously need to get ssdi or SS

    example: someone born with a birth defect or severe medical ailment that can never work.

    There are alot of inequities .

    We had a discussion about the VA. I think vets are treated horribly.

    They should get a TRI-care like insurance that they can use to see doctors in the community. And not the "clinics" or VA hospitals.

    They should be able to shop around for what they want. And if it costs more I think they deserve it based on there sacrifices.

    I also think they should get preferential treatment ( yes reverse discrimination) in matters such as loans and grants.

    With some exceptions it is a generally postive learning experience outside of war and war injuries. I am glad Obama is emphasizing ROTC again.
  • Webster666

    Posts: 9217

    Jan 28, 2011 4:22 AM GMT
    Bullshit.
    Social Security is absolutely solvent for at least the next 25 years.