Investors Business Daily’s Jed Graham reports on the CBO’s new projections for Social Security, which have been overshadowed by the agency’s estimate that the Affordable Care Act will reduce employment in future years. But the two are at least partially related: CBO’s projections of larger cash deficits for Social Security are mostly driven by forecasts of a weaker economy and lower tax revenues. The ACA’s disincentives to work account for part of the growing revenue gap, though other macro factors appear to play a larger role.
Check out Jed’s story here.
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1 comment:
Wow, who would have believed this? Anyone who understands how social security works will understand that the cliff is approaching and there is little we can do about it except bail out before it is too late.
We have lower participation rates in the work force. Older workers who have already maxed out their Social Security benefit after 35 years are contributing far less than was expected because they have left the labor force either willingly or have been unable to find another position.
This is what happens when you use cash accounting instead of accrual accounting.
Good luck!!!
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