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Obama: Social Security is Structurally Sound; Trustees: Unfunded Obligation
Is $8.6T'
President Barack Obama said in Wednesday nights presidential debate that Social Security is structurally sound, but Social Securitys Board of Trustees said in their 2012 annual report that the program faced $8.6 trillion in unfunded obligations--meaning that it is currently obligated to pay out $8.6 trillion more in benefits than it is anticipated to bring in through taxes.
However, in their annual report published on April 25, the Social Security Trustees said that program not only faces $8.6 trillion in unfunded obligations but that the situation became dramatically worse over the previous year.
The trustees point out that a major legislative change that increased the unfunded obligation of Social Security was the cut in the Social Security payroll tax that had been advocated by President Obama. This payroll tax funds the Social Security program.
President Barack Obama said in Wednesday nights presidential debate that Social Security is structurally sound, but Social Securitys Board of Trustees said in their 2012 annual report that the program faced $8.6 trillion in unfunded obligations--meaning that it is currently obligated to pay out $8.6 trillion more in benefits than it is anticipated to bring in through taxes.
However, in their annual report published on April 25, the Social Security Trustees said that program not only faces $8.6 trillion in unfunded obligations but that the situation became dramatically worse over the previous year.
The trustees point out that a major legislative change that increased the unfunded obligation of Social Security was the cut in the Social Security payroll tax that had been advocated by President Obama. This payroll tax funds the Social Security program.