Thursday, March 25, 2010

Whoops, Social Security Just Went Bust

Social Security will pay out more in benefits than it receives in payroll taxes this year, the first big milestone on the road to its eventual insolvency.

Thanks to a surge in benefits and a collapse in paychecks, this plunge into the red comes 6 years faster than the most recent CBO estimate predicted (It had been 2016).

The CBO has yet to update its estimate of the date at which the program will burn through its "surplus" and go completely bust (currently 2037), but given that the deficit arrived 6 years sooner than the estimate the CBO made only a year ago, we wouldn't be surprised to see a startling revision there, too.

Emphasis added. Startling indeed.

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