Social Security: Will the Trust be Broken?

Trustee Thomas R. Saving to Testify Before Senate Committee

WASHINGTON (July 28, 2003) -- In conjunction with a bipartisan effort to reform federal prison industries (FPI), two former chief economists at the Department of Labor (DOL) in the Clinton and Bush administrations will address a Capitol Hill briefing tomorrow on the critical importance of inmate work programs and HR 1829, which is currently headed for a floor vote.

Saving noted that the funding drain on both Social Security and Medicare will begin soon and accelerate rapidly:

  • Federal revenues dedicated to Social Security and Medicare will no longer be sufficient to fund both programs in 2008, just five years from now.
  • By 2013, five percent of all federal income tax receipts will be needed to cover benefits promised by both programs.
  • By 2040, Social Security and Medicare will require nearly half (47%) of all federal income tax receipts.

"Any redemption of the assets in these programs' Trust Funds will require resources from somewhere else in the federal budget," he added.