General Discussion
In reply to the discussion: I Love Social Security [View all]madville
(7,413 posts)SSDI is burning through it's trust fund due to the large increase in disability claims and will either have to find more revenue or reduce benefits at some point around 2016.
The OASI program ran deficits in 2011 and 2012 and had to dip into the trust fund to pay out above what it took in from workers and made in interest. Part of that was due to the tax holiday that just expired but the projections show it running deficits from here on out.
The reality is that in order for the Treasury to pay back the trust fund as SSA spends it down they will have to deficit spend, like selling more bonds to someone else. Social Security is owed that money and the Treasury borrowed it. Unfortunately with the budget the way it is it is not incorrect to say the overall federal deficit will have to increase in order to pay back Social Security at this point in time.
They need to raise or eliminate the income cap right off the bat then see what additional revenues that creates before anything else.