RED TIDE RISING. DEFICITS AND UNFUNDED LIABILITES. Public Debt. UNFUNDED LIABILITIES. SOCIAL SECURITY. Present Values of OASDI Cost Less Tax Revenue and Unfunded Obligations for Program Participants [Present values as of January 1, 2009; dollar amounts in trillions]
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RED TIDE RISING
DEFICITS AND UNFUNDED LIABILITES
Present Values of OASDI Cost Less Tax Revenue and Unfunded Obligations for Program Participants[Present values as of January 1, 2009; dollar amounts in trillions]
Present value of future cost less future taxes for current participants $18.7
Less current trust fund surplus $2.4
Equals unfunded obligation for past
and current participants $16.3
To fund these liabilities would require taking an additional 3.4% of all wages or 1.2% of Gross Domestic product in taxes forever.
Table III.B10.—Unfunded HI Obligations from Program Inception through the Infinite Horizon
[Present values as of January 1, 2009; dollar amounts in trillions]
As a percentage of:
Present ValueHI taxable payroll GDP
Infinite Horizon $36.4 6.5 % 2.8 %
From program inception through 2083 13.4 3.8 1.7
From: 2009 ANNUAL REPORT OF THE BOARDS OF TRUSTEES OF THE FEDERAL HOSPITAL INSURANCE AND FEDERAL SUPPLEMENTARY MEDICAL INSURANCE TRUST FUNDS
TOTAL $ 55,893,854,880,648
GDP (2010) $14,592,400,000,000
.Borrowing is done to finance profitable investments
.current deficits are matched by future surpluses in order to smooth consumption and reduce the excess burden of taxation
THESE ARE BIG IFS!!!