Seniors: Federal Gov Now Owes $2.5T To The Social Security Trust FundBy 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.”