Think Progress‘ Matthew Yglesias writes:
This is almost true. The Social Security system does indeed have a gap between “the quantity of tax revenue coming in” and “the quantity of benefits being paid out.” But this gap is not “projected to flip around.” It already has.
According to The Social Security Board of Trustees 2011 Annual Report, Social Security added paid out $49 billion more than it took in last year, and will pay out another another $46 billion more than it takes in next year.
Yglesias is right: creating private retirement accounts funded by the current Social Security revenue stream would increase deficits. But so would the payroll tax cut extensions in President Obama’s American Jobs Act. No one ever seems to ask Obama about that either.
