For the first time in 39 years, Social Security payments made to retired Americans this year, and every year after, will exceed tax revenues coming into the federal government in the wake of the pandemic's economic downturn, according to government report.
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The recession and increased mortality rate due to the COVID-19 pandemic are the main factors driving the earlier depletion of funds, according to the report — the red flags adding to the pressure for federal lawmakers to act as a wave of retiring baby boomers and the pandemic's new variants are sure to put more strain on an already stressed system.
"Sudden and substantial benefit cuts await Medicare and Social Security beneficiaries in less than 15 years — well within the lifetimes of many current recipients — as long as lawmakers continue to ignore the warning signs in these reports. Solutions must be found that are fiscally and generationally responsible," said Robert Bixby, the coalition's executive director.
"While bipartisan efforts are necessary to make needed changes to address Medicare and Social Security long-term financial challenges, most Democrats want only to expand benefit promises further without generating sustainable trust fund solvency," Crapo said in a statement Wednesday.Blank Social Security checks are run through a printer at the U.S. Treasury printing facility Feb. 11, 2005 in Philadelphia, Pa.Senate Finance Committee Chair Ron Wyden, D-Ore.
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