Robert Greenstein

Budget Control Act Military Cuts Will Cover the Social Security Shortfall

A key reason that it's relatively easy to scaremonger about predictions regarding Social Security's finances decades in the future is that the language often used to talk about Social Security's finances isn't immediately comparable to anything else that most people can relate to. A number that isn't comparable to other numbers you know is a meaningless number. How big a difference is seven trillion dollars? It sounds like a huge number. But in a context devoid of comparable numbers, it's a meaningless number.

Responding to the 2012 Social Security Trustees report, Robert Greenstein of the Center on Budget and Policy Priorities put the Trustees' projections about the future finances of the Social Security system in the context of the current debate about tax policy:

 

The revenue loss over the next 75 years from making [the tax cuts enacted under President Bush] permanent would be about two times the entire Social Security shortfall over that period. Indeed, the revenue loss just from extending the tax cuts for people making over $250,000 -- the top 2 percent of Americans -- would itself be nearly as large as the entire Social Security shortfall over the 75-year period. Members of Congress cannot simultaneously claim that the tax cuts are affordable while the Social Security shortfall constitutes a dire fiscal threat.