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>The problem of course is there's no "there" there. Any funds collected today by payroll taxes, and not used for today's benefits, are lent to the general fund
by camiller 16y ago
>The problem of course is there's no "there" there. Any funds collected today by payroll taxes, and not used for today's benefits, are lent to the general fund and spent. There are no funds being saved for next year's benefits, much less the current tax payers.
And in a short 5 years the direction changes because 2015 is when SS outflow is expected to exceed inflow and they have to start using some of the interest income off those bonds. In 2025 the inflows and interest income become insufficient and the SS trust fund has to start selling the bonds and by 2035 the assets are themselves exhausted.
The 2010 OASDI Trustees Report
http://www.socialsecurity.gov/OACT/TR/2010/tr2010.pdf http://www.socialsecurity.gov/OACT/TR/2010/tr2010.pdf