A site member posted this:
A couple reports by the Congressional Research Service…”Maintaining financial balance after trust fund insolvency would require substantial reductions in Social Security benefits, substantial increases in income, or some combination of the two. The trustees project that following insolvency of the combined funds in 2034, Congress could restore balance by reducing scheduled benefits by about 23%; the required reduction would grow gradually to 27% by 2091. Alternatively, Congress could raise the Social Security payroll tax rate from 12.4% to 16.0% following insolvency in 2034, then gradually increase it to 16.9% by 2091.”
Social Security: What Would Happen If the Trust Funds Ran Out?
Social Security: The Trust Funds
There is no trust fund. There is only a pile of IOU’s issued by the government.
Social Security is now running a deficit. So, the Social Security Administration cashes in some of these IOU’s to send money to recipients.
This is known as “‘looting the trust fund.” That is silly. There is no fund to be looted.
This has always been true. John Attarian explains.
Much of the public is convinced that a perfidious Congress is rifling a “trust fund” where our Social Security taxes are “held in trust” to pay future benefits, that this is why Social Security is headed for trouble, and that all Congress has to do to fix Social Security is put this stolen money back. These beliefs crop up perennially in letters to editors.In July 1998, Carolyn Lukensmeyer, director of the Americans Discuss Social Security project, told the Senate Special Committee on Aging that this alleged raiding of the trust fund to finance other spending is “the real focus of the…