Social Security

Social Security Debate Heats Up

With reports that the Super Committee has been considering reforms to Social Security, rhetoric from all sides of the issue has been heating up. This past weekend, the Washington Post ran an interesting article on Social Security, its trust fund and funding system, and its future insolvency.

The Importance of Shared Sacrifice

As is well-known by now, the growth in entitlement programs fueled by rising health care costs and an aging population threatens an ever-increasing national debt. Our largest mandatory spending programs occupy nearly one-third of the federal budget and, in the coming years, payments out of these programs will continue to outpace the rate of growth in the overall economy. As such, serious entitlement reforms will have to play a role in a comprehensive approach to long-term debt reduction, along with other areas of the budget, in order to get our fiscal house in order.

Social Security COLA Increase

Social Security beneficiaries will see a raise in their benefits next year, resulting from a 3.6 percent cost-of-living adjustment (COLA) increase. The last time seniors saw such an increase was 2009, when they received a 5.8 percent bump in their Social Security checks.

Offsetting the Jobs Bill

Yesterday, the President offered a plan for how he would pay for his $447 billion jobs proposal. The pay-fors would come entirely from revenues, mainly from limiting itemized deductions and other tax expenditures for people earning over $200,000 ($250,000 for families) per year.

CBO Releases Social Security Projections

CBO's latest Social Security projections bring no surprises to anyone familiar with the state of the program's finances. CBO projects the program to face a shortfall in the 2030s, with permanent cash flow deficits.

‘Line’ Items: Goals Edition

Clutch Goals -- The U.S. Women’s Soccer team scored an improbable victory over Brazil on Sunday in the Women’s World Cup, overcoming a scoring and manpower deficit with a last-minute goal and sealing the victory through penalty kicks. A similar storyline is playing out in Washington involving a different deficit -- the federal budget deficit. It looks as if negotiations to raise the statutory debt limit and reduce the deficit will also come down to the wire.

The Facts on the Chained CPI

Coverage of the so-called "chained CPI" has been heating up recently, due to rumors that it might be included in the latest round of debt negotiations.

Health Care Versus Aging

As we explained in our recent analysis of CBO's Long-Term Budget Outlook, the debt is on an unsustainable path. Only a decade from now, under their Alternative Fiscal Scenario, debt will surpass 100 percent of GDP. And by 2037, it will exceed 200 percent.

Driving this is the increasing cost of entitlement spending -- Social Security, Medicare, Medicaid and (to a lesser extent) other health spending. But what drives the growth of these programs?

‘Line’ Items: Golf Edition

Time ‘Fore’ Action – Golf, that favorite pastime of power players, was even more popular than usual in Washington last week. Not only did the U.S. Open bring the best professional golfers in the world to the D.C. area, but a powerful foursome also hit the links, perhaps linking fiscal policy matters to their conversation as they played their round. Yet, while the Congressional Country Club in Bethesda, Maryland saw a dominating U.S.

The Wall Street Journal's Social Security Tool

It seems that interactive tools are definitely in vogue. We'd like to say we started the trend with the Stabilize the Debt simulator, and we have continued it with the fiscal plan Comparison Tool we released yesterday.

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