CBO Snafu: Social Security to Start Bleeding in 2010

by Ryan on March 25, 2010

in Economy,Election 2010,Health Care,Politics

In the same week that the largest new entitlement program in 45 years just became law, the Congressional Budget Office (CBO) has issued numbers indicating that Social Security is going to pay-out more than it takes in not in 2016 as projected but in 2010!  The official “day of reckoning” has been moved from 2041 to 2037.  However, according to experts we are “not to expect the date to lurch forward again.”  Ha!  That, and I can sell you that big bridge in Brooklyn for just a few apples!

Why did this happen?  The reason is simple:  the recession means less jobs, and therefore less tax revenue coming into the system.

Here’s where it gets a little nuts:  America’s largest and longest-running entitlement program has started to hemorrhage the same time that the same CBO scored the new Obama Care expenditures at about $940 billion (not including the $200 billion plus “doctor fix”).  So, has the CBO figured out when Obama Care’s “day of reckoning” is coming, or are we just waiting for the President’s “debt panel” to recommend (likely after the November elections, by the way) that the government institute a national sales tax or VAT tax to pay for the new entitlements?  But, since Social Security is bleeding now and Obama Care’s real craziness doesn’t take effect until 2014, how much of that new VAT money is going to Obama Care versus shoring up Social Security?  Also, how much of all that Obama Care student loan money is going to stay in that system, versus paying to shore up Social Security?  Hmm… still want that bridge?

Situation Normal, All F*&%ed Up

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