Social Security – The Issue They Won’t Discuss

You won’t hear many politicians discussing Social Security these days, and probably even fewer will next year. But changes are occurring in the program. Not long ago, the trustees of the Social Security Trust Fund were projecting that tax revenue would exceed benefit payments for some years to come. Things have changed. According to The Washington Post, in 2010 the recession reduced revenue and increased benefit payments so that for the first time the program took in less revenue than it paid out. It’s happening again, with the program requiring supplements from the Treasury.

Now, Social Security is sucking money out of the Treasury. This year, it will add a projected $46 billion to the nation’s budget problems, according to projections by system trustees. Replacing cash lost to a one-year payroll tax holiday will require an additional $105 billion. If the payroll tax break is expanded next year, as President Obama has proposed, Social Security will need an extra $267 billion to pay promised benefits.

Politicians in both parties aren’t discussing the issue, because they’re afraid of how senior citizens will react. But failing to take some action will make the situation worse and put both the program and the rest of the federal budget in deeper trouble than it already is.

Social Security is hardly the biggest drain on the budget. But unless Congress acts, its finances will continue to deteriorate as the rising tide of baby boomers begins claiming benefits. The $2.6 trillion Social Security trust fund will provide little relief. The government has borrowed every cent and now must raise taxes, cut spending or borrow more heavily from outside investors to keep benefit checks flowing.

Many Democrats have largely chosen to ignore the shortfall, insisting the program is flush, citing the existence of the trust fund. They argue that fixing Social Security can wait, perhaps for years.

Senate Majority Leader Harry M. Reid (D-Nev.), who is fighting to maintain control of the Senate, has been particularly outspoken. In March, as a bipartisan group of six senators was gaining attention for a push to draft a debt-reduction plan that included a Social Security fix, Reid summoned hundreds of activists to a rally on Capitol Hill. Fresh off a tough reelection campaign that turned in his favor after he accused his tea party opponent of wanting to “wipe out” Social Security, Reid exhorted policymakers to “leave Social Security alone.”

Read the whole article. It’s worth learning what’s been going on behind the scenes. It’s understandable why the politicians are trying not to talk about the issue, but it’s not clear at all why the media haven’t given this more attention.