Class Notes 041608 Social Security Budget

Class Notes 041608 Social Security Budget - 4/16/08 Social...

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4/16/08 Social Security Budget Last time component. Seems well-known Social Security will go broke, these tax and/or benefit rules will  change What does it mean for system to go “broke”? Even after system “broke”, taxes will probably  cover about 80% of promised benefits Projecting Social Security Official “Trustee” projections made by the Office of Chief Actuary (OACT) in SSA. Annual report comes out each April, looks ahead 75 years  Reading list has few pages from huge  report http://www.ssa.gov/OACT/TR/TR08/lrIndex.html Trustees Report Focuses of Trust Fund (Remember: Trust Fund rises/falls with off-budget surpluses/deficits) Trust Fund is the lock-box Identity o Trust Fund t  = Trust Fund t-1  + Interest t   + Taxes  - Benefits t o Interest t
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This note was uploaded on 04/28/2008 for the course ECON 401 taught by Professor Sabelhaus during the Spring '08 term at Maryland.

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Class Notes 041608 Social Security Budget - 4/16/08 Social...

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