CBO Budget Report Shows Little Change to Social Security Outlook (updated)

[ProSense]

CBO Budget Report Shows Little Change to Social Security Outlook

By EPI economist Monique Morrissey

Yesterday’s Congressional Budget Office budget report showed that the weak economy continues to be a drag on Social Security’s short-term finances as payroll tax receipts lag pre-recession projections. Outlays are also higher than anticipated before the downturn, as Social Security has helped cushion the blow for older workers who have lost their jobs. This will have little impact on Social Security’s long-term finances, however, in part because workers who take early retirement receive reduced benefits.

Social Security is still projected to run an $868 billion surplus over the next decade, building up a trust fund sufficient to last through the peak baby boomer retirement years.

Nevertheless, gloomy news reports—in particular an Associated Press story by Stephen Ohlemacher—show that when it comes to Social Security, no news is bad news. The AP story claims that “Social Security will run at a deficit this year and keep on running in the red until its trust funds are drained by about 2037.” The story misrepresents the trust fund’s solvency by excluding interest earnings, a major source of revenue for Social Security. The article also fails to mention that even if nothing is done to shore up the system’s finances, current tax receipts will be sufficient to cover most benefits in 2037, which will still be higher in inflation-adjusted terms than benefits are today. Social Security is not in crisis.

A paper released yesterday by EPI looks at Social Security’s long-term finances, concluding that the biggest cause of Social Security’s projected long-term shortfall is not rising life expectancy or the baby boomer retirement, but rather stagnant wages and growing inequality.

1. Raise the income cap

2. Raise the minimum wage.

Updated to add this video: Sanders Convenes Social Security Caucus

[global1]

1. So How Come This Info Isn't Spread Widely By The Dems And The MSM......

and instead all we here the Repugs and their talking heads saying SS is doomed and we need to raise the retirement age and cut benefits?

[Whisp]

2. let's start with spreading it here.

noted a big huge silence lately on the topic?
just like after DADT was repealed - big huge silence on the topic unlike days previous where every second topic was Obama is a gay Hatin' Homophobe that will not sign DADT.

tiresome lot

[Kweli4Real]

4. This will be shouted down in ...

3 ... 2 ... 1 ... Commence uninformed rants.

[ProSense]

3. The TV news isn't going to cover it, but

that doesn't mean it's not happening:

Schumer steps up Social Security assault on House Republicans

Senate Democrats led by Sens. Charles Schumer (D-N.Y.) and Bernie Sanders (I-Vt.) are gearing up for a battle with House Republicans over Medicare and Social Security benefits.

Schumer and other Democratic strategists see Medicare and Social Security as winning political issues that can help them regain the momentum they lost over the last two years.

Schumer, who has taken over the Senate Democrats' communications operation, delivered some of his most direct shots at House GOP leaders.

“They want to privatize Social Security,” Schumer said of Republicans. “Privatize equals end — no more.”

<...>

[LiberalFighter]

5. 3. Create more jobs

[damntexdem]

6. The only SS crisis is constituted by the attacks on it.

And the SS issues can be easily resolved -- as you say, by raising or eliminating the FICA tax cap.

And raising the minimum wage would be good for workers, quite apart from any effects on SS.

[ProSense]

7. Actually,

"And raising the minimum wage would be good for workers, quite apart from any effects on SS."

...more wages, more payroll taxes.

The difference betweeen a person earning $14,000 and 18,000 or more.

More jobs, more payroll taxes.

The difference betweeen a person with a job and one who is unemployed.

[ProSense]

8. Additionally,

the increase in wage is for the same worker, and as such would mean the employer's portion would also increase. This is money that would otherwise not be put into the system.

Are people upset that SS is not in crisis?

[Enthusiast]

9. Alright, enough!

If this disinformation is everywhere we listen and read, why won't President Barack Fucking Obama go on TV and tell the American people that social security is sound? He has the power to do this. Why doesn't he say, "Social security has never added a dime to the deficit."

If he isn't 'one of them' why doesn't he say it?

[ProSense]

10. That's your response to the OP? Maybe

because some people never listen to a damn word he says. He'd go on TV and state his position, and words would still be put in his mouth.

Did you miss the SOTU?

[underpants]

11. Sadly the AP headline will be the one that Fox runs and CNN will follow

we like in a bubble

[mikekohr]

12. Big Kick