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You seen to be confusing two different issues. The current situation with social security is that the expenditures for benefits exceed the revenues from taxes.
by drdec 5y ago
You seen to be confusing two different issues.
The current situation with social security is that the expenditures for benefits exceed the revenues from taxes. The difference is being made up by the social security reserve fund.
This fund consists of the US Treasuries referenced in the article. There had not been any issue with the government paying these debts. They are an expected part of the budget.
The point at which we get into trouble is when the reserve fund is exhausted. Then the government will have to spend more money to keep social security benefits at their current levels. This additional expense is not currently budgeted for.
- throwaway6734 5y agoOr cut social security payouts
- tcmart14 5y agoIsn't there more to the story though? For decades IOUs were made to social security because there was a large surplus, that if untouched, would have gained interest providing for a lot more runway and wiggle room for social security well into the future.
- drdec 5y agoWe are currently running through that surplus. Current estimate project the surplus will last (and make up for the deficit between revenues and benefits) until the early 2030s.