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2006 Trustees Report Shows Social Security is Still in Serious Trouble
May 01st 02:48:19 PM
Moments ago, the Social Security Trustees released their 2006 Annual Report on the state of the current system. Not surprisingly, last year's failure to reform the system with personal accounts has made the outlook for the system bleak. S4 will have a thorough analysis of the report soon, but here are some highlights from the Social Security News Release
- The projected point at which tax revenues will fall below program costs comes in 2017 -- the same as the estimate in last year’s report.
- The projected point at which the Trust Funds will be exhausted comes in 2040 -- one year earlier than the projection in last year’s report.
- The projected actuarial deficit over the 75-year long-range period is 2.02 percent of taxable payroll -- up .09 percent from last year’s report.
- Over the 75-year period, the Trust Funds require additional revenue equivalent to $4.6 trillion in today’s dollars to pay all scheduled benefits. This unfunded obligation is $600 billion higher than the amount estimated last year.
Jo Anne Barnhart, Commissioner of Social Security, had this to say: "With the release of this report, we have another opportunity to send a signal to younger generations of Americans that we, as a society, are committed to strengthening this important program for them."
S4 also has another opportunity to tell Congress it is time to get your heads out of the sand. This report shows that the failure to reform the system last year cost our generation too much, and its time to get serious about reform through personal accounts!
Posted by Nicola Moore
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