Many of the decisions the Joe Biden Government has made since taking office have drawn intense criticism, but recently, one of the most prominent problems the administration is dealing with is the way it handled Social Security.
The Congressional Budget Office, a nonpartisan organization that studies Congress, recently published a study outlining the problems the federal government has had with Social Security, including significant benefit reductions.
Their particular study spells out a more dire warning than previous assessments, one that could cause chaos if the trajectory is not changed quickly.
The Social Security Administration’s combined retirement and disability insurance programs are expected to run out of money two years sooner than the yearly report provided by the Social Security Administration’s trustees, according to the Congressional Budget Office.
That specific year estimated by the CBO lists that it will run out of money in 2033 instead of 2035. This more accurate prediction is a dire warning that will call for a specific course of action that the Biden Administration doesn’t seem to be taking.
The Trustee’s report seems to ignore the ongoing rise in the cost of living in the United States, which has been exacerbated by Democrats’ careless federal spending and budgeting.
In contrast to the CBO’s report, which cites the 8.7% increase in the cost of living for merely 2023, the Social Security Administration’s Trustee’s report only accounts for a 4.5% inflation rate for 2022 and a 2.3% inflation rate for 2023.
The disparate percentages only demonstrate once more that the federal administration is either oblivious to or unwilling to acknowledge the current predicament.
One thing has become clearly evident despite the two conflicting projections: the Social Security Administration’s future is anything but certain.
The massive increase in expenditure in both Congress and the Biden Administration has utterly eliminated any prospect of the Biden Administration stopping this government agency from devolving into anarchy, demonstrating yet again how they are kicking the can down the road for someone else to deal with.
Not to mention that any reform to improve the SSA would be prevented by the enormous growth of the American national debt.
The impending issue is demonstrating that the federal government is running out of both time and money as 2033 is only ten years away.
The Social Security Administration is also dealing with a huge amount of overspending as well, the CBO analysis claims. Since its inception, the SSA has only taken 2% of a worker’s income, promising that its tax rate will only rise to 6% at maximum.
Currently, the tax has climbed by 12.4%, and according to the CBO, if nothing is done to change the situation, in 75 years the tax is expected to rise to an astounding 45%.
The CBO predicts that by 2033, payouts from the SSA might be reduced by 23% in some places if nothing is done to reform it. Something that many Americans find difficult to tolerate.
According to The Daily Signal, a massive tax hike of 17.3% would be required if the SSA genuinely wanted to address the problem of insolvency.
No matter whose report you read, it is obvious that the Social Security Administration is in a desperate situation and needs assistance right away. With its ongoing expenditures and rising national debt, the Biden Administration has done little to alleviate this problem instead of making it worse.