Following is from the Congressional Budget Office:
Social Security’s Dedicated Tax Revenues are Falling Short of its Spending
In calendar year 2010, for the first time since the enactment of the Social Security Amendments of 1983, spending for the program exceeded its dedicated tax revenues. In 2011, spending exceeded dedicated tax revenues by 4 percent, and that gap is growing. As shown in the publication’s first group of exhibits—Exhibits 1 through 8—CBO projects that:
Over the next decade, spending will exceed dedicated tax revenues, on average, by about 10 percent. With more members of the baby-boom generation entering retirement, spending will increase relative to the size of the economy, whereas tax revenues will remain a roughly constant share of the economy. As a result, the gap between the program’s spending and tax revenues will grow larger in the 2020s and will exceed 20 percent of tax revenues by 2030.
Under current law, the DI trust fund will be exhausted in 2016, and the OASI trust fund will be exhausted in 2038. It is a common analytical convention to consider the DI and OASI trust funds in combination. CBO projects that, if legislation to shift resources from the OASI trust fund to the DI trust fund was enacted as has been done in the past, the combined trust funds would be exhausted in 2034. However, considerable uncertainty surrounds the various factors that affect the program’s revenues and outlays, and thus the date at which the trust funds would be exhausted.
The resources dedicated to financing the program over the next 75 years fall short of the benefits that will be owed to beneficiaries by 1.95 percent of taxable payroll—up from 1.58 percent a year ago. That means, for example, that if the Social Security payroll tax rate was increased immediately and permanently by 1.95 percentage points—from the current rate of 12.40 percent to 14.35 percent—or if scheduled benefits were reduced by an equivalent amount, then the trust funds’ projected balance at the end of 2086 would equal projected outlays for 2087.
QUINNSCOMMENTARY 
Although I have benefited from the 2% “raise” that I got the last two years, I have thought from the initial conception that temporarily lowering the Social Security tax to help stimulate the economy was ill conceived and irresponsible. What I haven’t seen yet is a fact based projection that shows what effect this reduction in Social Security revenues will have on the future health of the Social Security program.
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There is no reduction in SS revenue. Actually the Treasury is making up the loss from the payroll tax holiday. In other words increasing the federal deficit to make up the lost SS revenue.
Dick
Richard D Quinn Editor Quinnscommentary.com
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