Monday, September 3, 2012

FactCheck.org: Social Security system's ocean of red ink

FactCheck.org : Democrats Deny Social Security’s Red Ink:
But the fact is that Social Security has now passed a tipping point, beyond which the Congressional Budget Office projects that it will permanently pay out more in benefits than it gathers from Social Security taxes. The imbalance is made even larger this year by a one-year "payroll tax holiday" that was enacted as part of last year’s compromise on extending the Bush tax cuts. The lost Social Security tax revenues are being made up with billions from general revenues that must all be borrowed. The combined effect is to add $130 billion to the deficit in the current fiscal year.
What will end Social Security as we know it? The answer is, "Social Security as we know it."

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