CBO: Social security spending will outpace tax revenues
WASHINGTON – Spending for Social Security totaled $773 billion in fiscal year 2012, about 5% of gross domestic product (GDP) and one-fifth of federal spending, the Congressional Budget Office (CBO) stated in an updated report released Oct. 2.
Over the next 10 years, outlays will exceed dedicated tax revenues by, on average, about 10%. That gap will grow larger in the 2020s.
“As more members of the baby-boom generation retire and the U.S. population grows older in the coming decades, Social Security outlays are projected to grow more rapidly than the economy and more rapidly than the program’s dedicated tax revenues,” the CBO stated.
The report, available at http://www.cbo.gov/publication/43649, expands on a previous report that the CBO released in June.
By 2030, Social Security outlays will be about 6% of the GDP and will exceed dedicated tax revenues by about 20%, according to the CBO.
“As a result, under current law, resources available to the Social Security program will become insufficient to pay full benefits in about 20 years, CBO projects,” it stated.