direstraits posted:As a reminder, the Reagan tax cuts resulted $2.94 trillion (inflation normalized) more revenue than the previous 8 years. Its the spending that increased more.
Per the social security trustees report for 2016, the fund will collect excess revenue thru 2020. Then, those treasury bonds must be cashed in to cover the shortfall. As of 2034, social security benefits must be reduced 22 percent when the treasuries run out.
But since 2010, Social Security’s cash expenses have exceeded its cash receipts. Negative cash flow last year was about $74 billion, according to the latest trustees’ report, and this year the gap is projected to be around $84 billion. While the credited interest on all those Treasuries is still more than enough to cover the shortfall, that will only be true until 2020. After that, Social Security will begin redeeming its hoard of Treasuries for cash to continue paying benefits – as was the plan all along.
http://www.pewresearch.org/fac...out-social-security/
It seems that for the past few years that Social Security has been tapping the trust fund's interest to pay obligations. Thank's Ol'bama for the welfare economy!