For the first time since 1983, social security costs will exceed the tax’s income, according to an annual report released today from the Social Security Administration. This deficit comes six years earlier than the agency projected in the 2009 report. The decreased number of employees in the US job market has produced fewer paying the social security tax – resulting with a social security deficit earlier than was expected.
The report states that only 2010 and 2011 will be in the red until 2015, but this projection is based on the assumption that the US economy will come out of the current recession. Furthermore, the report also states that the exhaustion of social security will occur in 2037 – thereby demanding eventual reform from increased social security taxes, decreased social security benefits, or likely a modest combination of both.