There will be dollars, just not enough
SS is a pay as you go system, so current workers are paying benefits for current retirees. Congress has taken the extra revenue, and then loaned it back to itself to pay other bills. Congress is sitting on a stack of IOUs to future recipients of social security.
No we're in the bonus period, as current revenues are no longer enough to pay current retirees. So Congress has to cash in the IOUs (which it has to in turn borrow money to pay).
Those IOUs run out some time in the 2030s, at which time the social security will only have incoming revenue to pay benefits to retirees.
If Congress fails to find a solution, when the Social Security Trust Fund IOUs run out, Congress will cut benefits to 75% of the full level.
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In response to this post by UTPr0sim)
Posted: 02/23/2018 at 06:15AM