The threat that the Social Security disability trust fund would run out of money in 2016 is not news. People have been talking about this for a long while. But, there is apparently some urgency about the problem at long last. The trustees who oversee the disability trust fund issued a report last week. According to the trustees, if nothing changes, the fund will dry up in the third quarter of 2016. That would mean that everyone getting benefits would see a nearly 20% decline in their benefits. Interestingly, the trust fund shortfall could also lead to an increase in Medicare premiums. That could be the thing that saves the entire fund. I think Republicans in Congress would be content to let the disabled lose benefits. Republicans, after all, have contempt for the poor and disabled in their DNA. But, if people on Medicare have to pay more, watch out. Those people vote and they virtually always get what they want. The solution is simple and obvious: just move money over from the retirement trust fund. Because the disability trust fund is scheduled to go broke near the end of a presidential election, the politicians will do the right thing. It could get dicey, though. Look for the solution to come, as always, at the 11th hour. If you are getting disability benefits, be prepared for some sleepless night next year.
Sabre Rattling Or The End Of The World?
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