Social Security System -- May 9, 1977

Message to the Congress. May 9,1977

To the Congress of the United States:

The Social Security system affects the lives of more
Americans than almost any other function of government.
More than 33 million people currently receive benefits.
Another 104 million people are making contributions with
the expectation that they will receive benefits when
they retire or become disabled, or when their survivors
need help.

Today, the Board of Trustees of the Social Security Trust
Funds is submitting its 1977 report to the Congress. The
report tells us that the system critically needs financial
support in the short term. The high unemployment of recent
years has curtailed Social Security's revenues, while
benefits have risen with inflation. Since 1975 expenditures
have exceeded income; and existing reserves will soon be
exhausted.

Unless we act now, the Disability Insurance Trust (DI) Fund
will be exhausted in 1979 and the Old Age and Survivors
Insurance (OASI) Trust Fund will run out in 1983.

The Trustees' Report indicates that there are serious longer
term problems as well. Under current law the Social Security
system will have an estimated deficit of 8.2 percent of
taxable payroll over the next seventy-five years. About half
of this deficit is due to changes in the projected composition
of our population over those years. Higher life expectancy
and lower birthrates will make the nation older as a whole.
About half is due to a technical flaw in the automatic cost
of living formula adopted in 1972.
....
http://www.ssa.gov/history/carterstmts.html#system

[Solution: raise taxes.]

More amusements at: http://www.ssa.gov/history/presstmts.html



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