{"id":1971379,"date":"2023-07-12T20:35:00","date_gmt":"2023-07-13T00:35:00","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/social-security-insolvent-in-10-years-unless-congress-acts-cbo-director-says\/"},"modified":"2023-07-12T20:36:08","modified_gmt":"2023-07-13T00:36:08","slug":"social-security-insolvent-in-10-years-unless-congress-acts-cbo-director-says","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/social-security-insolvent-in-10-years-unless-congress-acts-cbo-director-says\/","title":{"rendered":"CBO Director warns: Social Security bankrupt in a decade without Congressional action."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fsocial-security-insolvent-in-10-years-unless-congress-acts-cbo-director-says%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1971379&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"post_content\">\n<div class=\"aplayer_app\" data-source=\"https:\/\/vs1.youmaker.com\/assets\/2023\/0712\/0ea0d5aa-9e71-4cf8-88fb-47f8ee0f4bb6\/audio.mp3?length=5869485&#038;duration=489\"><\/div>\n<\/p>\n<blockquote>\n<p>The two trust funds that undergird the Social Security system will have a zero balance in 10 years, forcing a 25 percent reduction in payments to all beneficiaries, Phillip Swagel, director of the nonpartisan Congressional Budget Office (CBO), told lawmakers on July 12.<\/p>\n<\/blockquote>\n<p>The Social Security program includes two trust funds, Old-Age and Survivors Insurance and Disability Insurance, which provide 25 percent of the payments made to beneficiaries. Both funds will be exhausted by 2034, according to Mr. Swagel, leaving only revenue from payroll taxes to supply benefits. That will mean an immediate 25 percent cut in benefits the day the money runs out.<\/p>\n<p>\u201cIn 2034, Social Security revenues are projected to equal 75 percent of the program\u2019s scheduled outlays, resulting in a 25 percent shortfall. Thus, CBO estimates that Social Security benefits would be reduced by 25 percent in 2034 under the payable-benefits scenario,\u201d Mr. Swagel testified before the Senate Budget Committee on July 12.<\/p>\n<p>Senators of both parties professed a desire to preserve Social Security for future generations.<\/p>\n<p>Committee Chair Sheldon Whitehouse (D-R.I.) said the purpose of the hearing is to figure out \u201chow to close that revenue gap to preserve the promise of Social Security\u201d for future generations and current retirees who will still be alive in 2035.<\/p>\n<p>\u201cOur promise to them is one we must not break,\u201d he said.<\/p>\n<p>\u201cSocial Security is part of the social fabric of America, and every Republican agrees with that as well,\u201d said Sen. Chuck Grassley (R-Iowa), the ranking Republican member of the panel.<\/p>\n<figure id=\"attachment_3914132\" style=\"width: 640px\" class=\"wp-caption alignnone\">\n\t\t<a href=\"https:\/\/img.theepochtimes.com\/assets\/uploads\/2021\/07\/22\/sheldon-whitehouse-1200x800.jpg\"><figcaption class=\"wp-caption-text\"><noscript><\/noscript><\/figcaption><\/a><br \/>\n\t\tSen. Sheldon Whitehouse (D-R.I.) speaks during a congressional hearing in Washington on Feb. 25, 2021. (Susan Walsh\/Pool\/Getty Images)<br \/>\n\t<\/figure>\n<p>The senators were divided on how to go about saving the system. While Democrats strongly favored boosting taxes on wealthy Americans, Republican leaders advocated for a range of options, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-to-increase-u-s-oil-lease-fees-50-while-accusing-big-oil-of-anticompetitive-activities\/\" title=\"Biden to Increase U.S. Oil Lease Fees 50% While Accusing \u2018Big Oil\u2019 of Anticompetitive Activities\">including tax increases<\/a>, delays to the retirement age, and benefit cuts.<\/p>\n<h2>Why It\u2019s Going Broke<\/h2>\n<p>Social Security suffers from the same problem affecting any business or household in financial trouble: more money is being paid out than taken in. That will continue well into the future if no action is taken, according to Mr. Swagel.<\/p>\n<p>\u201cIn particular, the number of people in that older age group, who are less likely to work and pay payroll taxes and who are generally eligible for Social Security benefits, grows faster than the number of people ages 25 to 54, who are more likely to work and pay payroll taxes.\u201d<\/p>\n<p>One part of the problem is that Americans are having fewer children, Mr. Swagel stated.<\/p>\n<p>The fertility rate for women ages 14 to 49 was 2.02 children per woman, on average, for the 20 years leading up to 2007, when the rate peaked at 2.12. A fertility rate of 2.1 is considered the replacement rate.<\/p>\n<p>The fertility rate fell to 1.67 by 2020. It\u2019s expected to rise to 1.75 by 2030, then remain unchanged for the remainder of the century.<\/p>\n<p>Also, people are living longer. \u201cIn CBO\u2019s projections, after 2024, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/social-security-insolvent-in-10-years-unless-congress-acts-cbo-director-says\/\" title=\"CBO Director warns: Social Security bankrupt in a decade without Congressional action.\">mortality rates decline<\/a> at the average rate that they declined between 1950 and 2019,\u201d Mr. Swagel said. That means future retirees will likely receive benefits for a longer period than their parents and grandparents did.<\/p>\n<p>In 1940, which was the first year Social Security benefits were paid, the average life expectancy for Americans was 60.8 years for men and 65.2 years for women. Today, it\u2019s 73.2 years for men and 79.1 years for women.<\/p>\n<figure id=\"attachment_3537582\" style=\"width: 640px\" class=\"wp-caption alignnone\">\n\t\t<a href=\"https:\/\/img.theepochtimes.com\/assets\/uploads\/2020\/10\/13\/Social-Security-1200x795.jpg\"><figcaption class=\"wp-caption-text\"><noscript><\/noscript><\/figcaption><\/a><br \/>\n\t\tTrays of printed Social Security checks are ready to be mailed from the U.S. Treasury\u2019s Financial Management services facility in Philadelphia on Feb. 11, 2005. (Bradley C. Bower\/AP Photo)<br \/>\n\t<\/figure>\n<h2>The Revenue Approach<\/h2>\n<p>Mr. Whitehouse would balance the books by increasing revenue. Specifically, his bill, the Medicare and Social Security Fair Share Act, would <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/dont-fall-for-the-democrats-ginned-up-social-security-scaremongering\/\" title=\"Don\u2019t Fall For The Democrats\u2019 Ginned-Up Social Security Scaremongering\">raise payroll taxes<\/a> on wealthy Americans.<\/p>\n<p>Currently, taxpayers don\u2019t pay Social Security taxes on income beyond $160,200. Mr. Whitehouse\u2019s proposal would apply Social Security taxes to wage, self-employment, and investment income above $400,000.<\/p>\n<p>Sen. Ron Wyden (D-Ore.) said he believes that <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/social-security-bankrupt-in-10-years-unless-congress-acts-cbo-director-says\/\" title=\"CBO Director warns: Social Security bankrupt in a decade without Congressional action.\">current tax laws give billionaires<\/a> a \u201cfree pass\u201d and they need to pay more in taxes.<\/p>\n<p>\u201cBillionaires often don\u2019t report income close to $400,000 because they live off their borrowings. So this can exempt them from bureaucratic hoops like audits and exempt them from taxes for years on end,\u201d he said.<\/p>\n<p>Democrats see changing the tax code as a matter of basic fairness for working people who are taxed on nearly all of their income.<\/p>\n<h2>Bipartisan Problem Solving<\/h2>\n<p>Mr. Grassley urged Congress to take a bipartisan approach to solving the Social Security problem, following the example of President Ronald Reagan and House Speaker Tip O\u2019Neill (D-Mass.) in the 1980s. Only when both sides work together will a solution be reached, he said.<\/p>\n<p>\u201cWhen you have candidates for president on the Republican side and you have a Democrati<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Social Security system&#8217;s trust funds will be depleted in a decade, leading to a 25% cut in payments for all recipients, warned Phillip Swagel, director of the nonpartisan Congressional Budget Office. The program comprises two trust funds: Old-Age and Survivors Insurance.<\/p>\n","protected":false},"author":1793,"featured_media":1971380,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-1971379","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1971379","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1793"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1971379"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1971379\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1971380"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1971379"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1971379"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1971379"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}