Social Security Payouts at Risk for 2010

posted on Mar 29 by Admin in the Disability News category

The Congressional Budget Office determined it will pay out more in Social Security benefits in 2010 than it will receive in taxes. Social Security benefits are paid to senior citizens who are retired and those with disabilities funded by a federal deducted tax from payroll.

This deficit has never happened before and was predicted not to happen until 2016. The Social Security administration blames the current recession as the main cause for this deficit taking place.

More than 15 million Americans are out of jobs. With fewer people working there are fewer paychecks being taxed and therefore, less revenue for the Social Security Administration. However, the administration says this will not affect benefits for 2010.

Since the 1980s, analysts have been trying to predict when the social security system would go into deficit. Most predicted it would take place somewhere between 2016 and 2020. Unfortunately the reality is that it’s happening now.