Late in the afternoon on Thursday last week, the Social Security Administration released its annual trustees’ report.
As is often the case when government entities have bad news to report, they do so on a schedule that makes it easier to bury the information.
The American people need to know the state of finances of the Social Security program so they can better understand why reform is not only necessary, but absolutely essential. Here are five takeaways from the most recent financial report:
$66 Billion Cash-Flow Deficit in 2016
Social Security is still considered solvent and able to pay full benefits because it has accumulated a $2.8 trillion trust fund, but since the entirety of its trust fund consists of IOUs, cash flow deficits must be financed by general revenue taxes or new public borrowing.
Since 2010, the Old-Age and Survivors Insurance program has taken in less money from payroll tax revenues and the taxation