Now that Trump and company and Republicans are going to be in charge, the anti-change anything rhetoric will be ratcheting up (if that is possible). A primary target will be Social Security. Everyone (almost) wants Social Security to continue and recognizes that the program is vital for all Americans. That won’t stop the unrealistic position that nothing has to change, it does.
Those who lobby to support Social Security need to be realistic and truthful in their rhetoric. Unfortunately that is not always the case. They often use scare tactics supported by misinformation which is easily absorbed by many Americans, especially seniors. Usually that rhetoric presents a rosy, no problem picture and that is not accurate or fair.
For those who want facts, the official projections and the Trustees conclusions we need to act upon, it’s all easily available HERE
Following is quick summary of the situation from the Committee for a Responsible Federal Budget.
Beware of the propaganda you see on Facebook. Most of it wanting to “save” Social Security is doing you a disservice by misleading you and giving you a false sense of security. The fact is we must take action to preserve the program and make it sustainable and that action must affect all generations to be fair.
Since 2010, Social Security has been running cash deficits — meaning that the total tax revenue it brings in from the payroll tax and income taxation of benefits has fallen short of benefit payments. So far, those deficits have totaled nearly $450 billion and this year alone will exceed $70 billion. In their latest report “the Trustees project annual deficits for every year of the projection period.”
However, the Social Security trust fund (technically, the hypothetical combined Old-Age Survivors and Disability Insurance trust fund) currently holds $2.8 trillion of government bonds which accumulate interest each year (these interest payments represents a cost to the rest of government. Including this year’s interest payment, Social Security is likely to run a small surplus this year — about $15 billion — as compared to its $70 billion cash deficit. This has led some to conclude that Social Security is in a strong fiscal position. This conclusion is wrong for several reasons.
For ongoing information and discussion about Social Security visit the SS category on this blog
Categories: Social Security