No. of Recommendations: 1
2828 wrote: The thing about unsustainability is it's unsustainable, and nothing dems have done leads me to believe they're serious about doing anything about the trillions of dollars of unfunded liabilities of SS and Medicare, nothing they've done leads me to believe they're serious about winnowing down the 16 trillion in debt and growing, and nothing they've done leads me to believe they're serious about cutting the trillion dollar deficit. Eventually something bad is going to happen, probably sooner than you think, because math doesn't play politics.

Dems won't listen to government's own Congressional Budget Office nor the Social Security Trust. Owebama doesn't care; he'll be out of office and busy burnishing his "legacy" in four more years.

The 2012 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds
http://www.ssa.gov/oact/tr/2012/index.html

In 2011, Social Security’s cost continued to exceed both the program’s tax income and its non-interest income, a trend that the Trustees project to continue throughout the short-range period and beyond. The 2011 deficit of tax income relative to cost was $148 billion, and the projected 2012 deficit is $165 billion. The sizes of these deficits are largely due to a temporary reduction in the Social Security payroll tax for 2011 and 2012. The legislation establishing the payroll tax reduction also provided for transfers from the General Fund of the Treasury to the trust funds to “replicate to the extent possible” revenues that would have occurred in the absence of the payroll tax reduction. Including these general revenue reimbursements, the 2011 deficit of non-interest income relative to cost was $45 billion, and the projected 2012 deficit is $53 billion. [...]

Under the long-range intermediate assumptions, the Trustees project that annual cost for the OASDI program will exceed non-interest income in 2012 and remain higher throughout the remainder of the long-range period. The projected combined OASI and DI Trust Fund assets increase through 2020, begin to decline in 2021, and become exhausted and unable to pay scheduled benefits in full on a timely basis in 2033. However, the DI Trust Fund becomes exhausted in 2016, so legislative action is needed as soon as possible.

In the absence of a long-term solution, lawmakers could reallocate the payroll tax rate between OASI and DI, as they did in 1994. For the combined OASI and DI Trust Funds to remain solvent throughout the 75-year projection period, lawmakers could: (1) increase the combined payroll tax rate for the period in a manner equivalent to an immediate and permanent increase of 2.61 percentage points (from its current level of 12.40 percent to 15.01 percent);1 (2) reduce scheduled benefits for the period in a manner equivalent to an immediate and permanent reduction of 16.2 percent; (3) draw on alternative sources of revenue; or (4) adopt some combination of these approaches. Lawmakers would have to make significantly larger changes for future beneficiaries if they decide to avoid changes for current beneficiaries and those close to retirement age.
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