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article imageU.S. Social Security paying out more than it's taking in

By Andrew Moran     Aug 7, 2010 in Business
Washington - In an annual trustees' reports on the fiscal health of Social Security and Medicare, it shows that social security will be paying out more than its taking in, which has come six years sooner than what was projected in 2009.
The financial collapse and the continuing retirement of many baby boomers has prompted the United States Social Security system to be in the red as the program is paying out more than it’s taking in, according to the Washington Times.
In an annual trustees' reports on the fiscal health of Social Security and Medicare, U.S. Treasury Secretary Timothy Geithner said it is expected to pay out more than $41 billion than what it takes in from payroll taxes. However, the Los Angeles Times reports that Geithner remains optimistic because Medicare’s financial outlook has improved since the passage of health care reform.
“The recession has...somewhat worsened social security's very near term outlook,” said Geithner. “Benefit payments are expected to exceed tax revenue for the first time this year, six years earlier than was projected last year, but the improving economy is expected to result in rough balance between social security taxes and expenditures for several years before the retirement of the baby boom generation swells the beneficiary population and causes deficits to grow rapidly.”
The New York Daily News reports that Medicare was projected to run out of money by 2017 but will remain in the black until 2029 but Social Security is expected to run out of money by 2037 unless Washington makes serious cuts or increase revenues
More than 53 million Americans collect Social Security.
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