Last week, Senator Mark Begich (D-AK) and Senate Budget Committee Chair Patty Murray (D-WA) introduced legislation that would make targeted increases to Social Security benefits.
Reps. John Delaney (D-MD) and Tom Cole (R-OK) introduced the Social Security Commission Act of 2014 today, which would establish a statutory commission with a mandate to recommend ways to make Social Security solvent for at least 75 years. The policy prescriptions would then be subject to an up-or-down vote in Congress.
We have already shown how both federal health care spending and revenue projections have been revised downward by $900 billion and $4.2 trillion, respectively, through 2021 since CBO's March 2011 baseline. Another story -- one that is a continuation of a trend since the Great Recession -- is the deterioration of Social Security's finances.
In CBO's 2014 Budget and Economic Outlook released this week, they addressed the future of the federal government's largest program, Social Security. Social Security has two separate trust funds: one for Old Age and Survivors Insurance and one for Disability Insurance. It is clear from CBO's analysis that both face mounting fiscal challenges in the coming years.
As the Senate looks for offsets for an unemployment insurance extension, there is one provision that has gotten some attention: ending "double-dipping" for those receiving both UI and federal disability benefits.
Note: This piece was originally posted on the Angry Bear blog.
Late in 2013, a debate about Social Security erupted centering around calls from some progressives to broadly increase Social Security benefits at a time when the program is already financial unsound. We weighed in a few weeks ago, explaining that given the program's existing actuarial shortfall, expanding it with broad-based benefit increases would be misguided (though targeted benefit enhancements may be warranted).
Recently, many policymakers and commentators have called for expanding Social Security benefits rather than slowing the program’s costs, suggesting that the program’s current shortfalls are modest and easily addressed. Below, we answer some questions about Social Security to help explain why many of these calls are misguided.
CBO's Long-Term Budget Outlook contains significant amounts of helpful data on Social Security. However, a lot of the data focus on just the outlays of the program; by contrast, reformers tend to focus more on its overall finances and the state of the trust fund. Today, CBO published some additional information on Social Security, showing both the program's full finances and, importantly, the ranges of uncertainty in their projections.