Proposed Social Security Expansion Poses Long-Term Fiscal Problem
(Washington D.C.) – According to the annual report of the trustees of the Social Security Trust Fund, the program has run an annual Deficit since 2013, and the Trust Fund itself will have spent its entire balance by 2033. While general federal revenues can be used to fund Social Security benefits until that happens, that program Deficit contributes to the growing federal Deficit – and annual benefits will have to be cut by an estimated 23 percent once the reserve is spent. There has been no real effort in recent years to address the long–term finances of the program, as the White House has diverted its attention towards other issues. And instead of attempting to ensure that benefits can be paid, some in Washington have actually proposed increasing Social Security benefits: an amendment to the annual Senate Budget resolution to raise Taxes dramatically while expanding benefits was supported by nearly all Senate Democrats.
Daniel Garza, Executive Director of The LIBRE Initiative, released the following statement:
“While few in Washington or this administration want to admit it, the growing national Debt poses a serious long-term challenge. Eventually Washington will be forced either to raise Taxes or cut benefits dramatically. That troubling choice will only grow worse if lawmakers rush to increase spending before laying a plan to ensure these programs are sustainable in the long run, as part of a Budget that makes sense for the people. Retirees and families deserve better. Lawmakers need to work together and find sensible solutions for important programs such as Social Security. Reform of Social Security should focus on improving the program so that it is sustainable for the long-term, matching revenues to benefits being paid, and meeting commitments that have been made to retirees and those soon to retire. If the government insists on maintaining the status quo, all of us will suffer the consequences.”