What most reports will
miss is that Congress will have to start to deal with reduced surplus
Social Security tax collections much faster than it or the public
expect. Starting in 2010, the roughly $80 billion in annual Social
Security surpluses that Congress has been borrowing and spending on
other programs will begin to shrink. From that point on, Congress will
have to either find other sources to replace the borrowed money or
reduce spending. The surpluses will end completely in 2017, the year
when Social Security begins to spend more than it collects.
In
2020, a little more than 12 years from now, today's $80 billion annual
Social Security surplus will turn into a $75 billion annual deficit--a
$150 billion change. From 2017 on, Social Security will require large
and growing amounts of general revenue money in order to pay all of its
promised benefits. Even though this money will technically come from
cashing in the special-issue bonds in the trust fund, the money to
repay them will come from other tax collections or borrowing. Moreover,
the billions that go to Social Security each year will make it harder
to find money for other government programs.
The 2008 Medicare and
Social Security Trustees Report shows that the two entitlement programs
cannot remain in their current forms. It is irresponsible to saddle our
children and grandchildren with the trillions in additional taxes that
will be needed to pay full benefits into the future. Making matters
worse, this cost continues to grow every year.
Unless Congress
begins to work now to fix this country's most important programs for
senior citizens, our children will face the choice of paying for
programs for their parents or paying for education for their children.
The first baby boomer has already retired under Social Security. Delay
will only make that dilemma worse.