Social Security to run permanent deficits
WASHINGTON (AP) - New congressional projections show Social
Security running permanent annual deficits unless lawmakers act to
shore up the massive retirement and disability program.
The Congressional Budget Office said Wednesday that Social
Security will pay out $45 billion more in benefits this year than
it will collect in payroll taxes, further straining the nation's
finances. The deficits will continue until the Social Security
trust funds are eventually drained, in about 2037.
Previously, CBO said Social Security would start running
permanent deficits in 2016.
In the short term, Social Security is suffering from a weak economy that has payroll taxes lagging and
applications for benefits rising. In the long term, Social Security
will be strained by the growing number of baby boomers retiring and
applying for benefits.