President Obama recently presented his proposed budget (2010) that included multi-year projections for revenue and outlays for the Social Security program under current law and economic assumptions by the Obama administration..

Social Security Taxes         Total Bil   Per Family

2007-2008 (Last year) $  658   $ 5,778
2009(Current budget)  $  654   $ 5,743
2010(Proposed)        $  682   $ 5,989
2011(Proposed)        $  719   $ 6,314
2012(Proposed)        $  756   $ 6,639
2013(Proposed)        $  803   $ 7,051
2014(Proposed)        $  842   $ 7,394


Social Security Benefits      Total Bil   Per Family
2007-2008 (Last year) $  612   $ 5,374
2009(Current Budget)  $  662   $ 5,813
2010(Proposed)        $  695   $ 6,103
2011(Proposed)        $  721   $ 6,331
2012(Proposed)        $  749   $ 6,577
2013(Proposed)        $  790   $ 6,937
2014(Proposed)        $  839   $ 7,367


Editor's Analysis:
The current year is the first year where Social Security taxes will not cover the Social Security benefits since 1981. According to CBO projections made last summer, we were to have a net inflow of tax revenue until about 2020 even though overall income was shown in a steady decline. However, the projections shown in the Obama administration's budget show an increase in revenue closely tracking the outlays. Is this a case of creative accounting?

March 10, 2009
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