To understand what is happening to Social Security visit Just the Facts, the folks operating this site unlike our politicians tell the real story of how we got here.
Here are some excerpts.
* Since 1982, Social Security has had surpluses ranging from $89 million to $190 billion per year. By law, these surpluses must be loaned to the federal government, which is obligated to pay the money back with interest. This is referred to as the “Social Security Trust Fund,” and at the close of 2009, it had a balance of $2.5 trillion.
Basically we, the boomers agreed to pay higher Social Security payroll taxes in advance to build up a trust fund for our retirements.
* In 2010 and 2011, Social Security is projected to spend a total of $48 billion more than it collects in taxes.
* In 2012-2014, Social Security is projected to collect a total of $10 billion more in taxes than it spends.
* Beginning in 2015, Social Security is projected to spend more than it collects in taxes every year into the foreseeable future.
So what happens in 2015? Is this the beginning of the end? Well it should not be.
* When Social Security spends more than it collects in taxes, it makes up the difference by tapping the Trust Fund, or in other words, by collecting on the money it has loaned to the federal government.
The projected future is-
* The Social Security Trust Fund is projected to grow every year up through 2020 because the interest it collects from the federal government is projected to exceed the program’s shortfalls.
* At the end of 2020, it is projected that the federal government will owe $3.1 trillion to the Social Security Trust Fund or about $9,000 for every man, woman, and child living in the U.S. at the time.
Now the federal career politicians would have us believe that we are not paying enough Social Security payroll taxes. When in fact since 1982 all of them have spent our Social Security trust fund on everything else.
Is anyone else feeling dismayed at this sorry state of affairs?