Seniors: Federal Gov Now Owes $2.5T To The Social Security Trust Fund

By admin on March 30, 2010, 8:26 am Posted in Finance News

What does this mean to Senior Citizens: the Federal Government owes the Social Security Trust $2.5 Trillion. That’s trillion dollars!

Do You Have Any Of the Special Treasure Bonds

The federal government has dipped into the Social Security Trust fund for a number of years. The government then issued the trust special treasury bonds. The Social Security Trust can only bank on the full faith and credit that the government will pay back the money owed. It seem that Social Security collected more money in payroll taxes than it paid out in benefits. This amounted to billions of dollars each year. This year, for the first time, the retirement program is slated to pay out more in benefits than it collects in taxes. It is estimated this will amount to approximately $29 billion more – give or take a few billion. Now the government will find it necessary to borrow even more money. This will be needed to start paying the owed IOU’s.

 

How Will This Affect Social Security Benefits Payable To Seniors

It is presently reported the shortfall will not affect current benefits. However, this is only as long as the IOU’s are available. Social Security is projected to reach the bottom of the barrel, when there’s no more money left in the Trust fund, by 2037. For 20 years, despite if the Democrats or Republicans were in office, Congress has been accused of taking money from the Social Security Trust funds in order to pay for other programs. And, of course, this acted as a mask to the actual size of the budget deficit. Mary Johnson, a policy analyst with The Senior Citizens League, stated, “We are not going to be able to put it off any more.”


10 Responses to “Seniors: Federal Gov Now Owes $2.5T To The Social Security Trust Fund”

  1. Mike says:

    “… full faith and credit that the government will pay back the money owed.”

    We all will pay it back in higher taxes or reduced benefits – NOT the government.

    “…, when there’s no more money left in the Trust fund…”

    There is no money in the so called trust fund now! Why not call it a debt fund?

    “Congress has been accused of taking money from the Social Security Trust funds…”

    Any surplus has ALWAYS been spent thanks to FDR. We all have been OVERTAXED since 1983.

  2. Pappyg says:

    FEAR – It’s what drives us to make hurried/questionable decisions. Find out how the onion was peeled, and why you have tears in your eyes. americaretoday dot com

  3. john scope says:

    Why is the writer using the word “accused”? It’s no longer open to debate that Congress took at least 2.5 trillion dollars from the Social Security fund and left a stack of IOUs for the taxpayer to repay.
    Why Does Mike point his finger at only FDR? Every Presidential administration and political party in power in Congress, both Republican and Democratic, from LBJ to Reagan to the Bushes to Obama, took the money and avoided talking about it. How many times have you heard this matter talked about by either political party’s candidate in this mid-term election campaign? If you are a member of the Boomer generation who is not well off or you are a current recipient of Social Security, you should be telling the political candidates of both parties to put the $2.5 trillion dollars back into the fund NOW and INCREASE the amount of payout because you are entitled to it. You earned it the old fashioned way – you paid for it, you financed it. Your SSI money was invested by Congress in everything else to the benefit of the taxpayers, the economy, business and industry. Let the commission appointed by the President look somewhere else to deal with the deficit and the additional 2.5 trillion dollar repayment. And as a token of appreciation by all the present and former members of Congress for their use of the SSI funds over the decades, let them pitch their pension funds and other retirement benefits into the SSI fund and live on the same SSI payout their constituents get.

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  5. Ben Brigman says:

    Remove the cap on Social Security and you will solve the problem and even drop the 6.2% the employer pays down around 4%. No one should mind taking care of the elderly. Would not want to see parents having to live with children when they are too old to work.

  6. Stretch says:

    You’re a real deep thinker. Thnaks for sharing.

  7. HARRY FROM CANTON says:

    “WHEN YOU ‘BORROW’ SOMETHING YOU ARE SUPPOSED TO RETURN IT IN AS GOOD OR BETTER CONDITION AS WHEN YOU TOOK IT.”

    ” WE’RE WAITING ! “

  8. Robert g. Hall says:

    why can’t these screens be set up so a person can print a copyfor future referance?

  9. pearler says:

    uH,yawl might want to look back into the beginning of the social insecurity brain fart.There is a all bets off clause,that says the government can just end the social insecurity fund and we can do nothing about it,but of course they would then have to lose the f.i.c.a. tax and that is a big money maker for them ;) .

  10. Jack Jepson says:

    Our leaders in the Congress and Senate are but servants to the American public. Why don’t we somehow make them accountable for so much they owe Social Security.
    Now they are going to short change us on the way the cost of living is adjusted. If we can spend billions on war why can’t they put back the money they owe us.
    Social Security isn’t an entitlement, we paid into it all our lives and they take it out without any time frame to put it back. Lets let them know that we know they are thief’s and get them out of office. They are suppose to act on the will of the people not their will. The our Constitution says if we are not happy with the way our representatives are working for “US” then fire them..
    Come on America lets take back the power to run the Government and get rid of the good old boys, who don’t care one bit about the people they represent. Sorry, but I am angry that the people in Government once there forget about why they are there.
    Lets have a Social Security adjustment just like congress has every year !!!! Thanks Fed Up

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