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The rest came from income taxes on Social Security benefits and interest earned on the government bonds held by the trust funds. ... according to the report. The program tapped the surplus, which ...
As of the end of calendar year 2010, the accumulated surplus in the Social Security Trust Fund stood at just over $2.6 trillion. [21] Social Security benefits are paid from a combination of social security payroll taxes paid by current workers and interest income earned by the Social Security Trust Fund.
Because Social Security tax receipts and interest exceed payments, the program also reduces the size of the annual federal budget deficit commonly reported in the media. For example, CBO reported that for fiscal year 2012, the "On-budget Deficit" was $1,151.3 billion.
In 2034, the Social Security fund's reserves will become depleted, but there is expected to be enough payroll taxes coming in for workers to pay out 77% of scheduled benefits.
In FY2008, Social Security received $180 billion more in payroll taxes and accrued interest than it paid out in benefits. This annual surplus is credited to Social Security trust funds that hold special non-marketable Treasury securities.
Any surplus money within the trust funds is typically invested in special ... The last time the Social Security tax rate increased was 1990 and the Medicare tax hasn’t increased since 1986 ...
Yet today Social Security is treated like all the other trust funds of the Unified Budget. [citation needed] As a result of these changes, particularly the tax increases, the Social Security system began to generate a large short-term surplus of funds, intended to cover the added retirement costs of the "baby boomers".
The main Social Security trust fund will continue paying out full benefits through 2034. Social Security's surplus will last a little longer, new report predicts [Video] Skip to main content