Forecast on Social Security deficit prepares Congress for budget-cutting

Washington, DC, United States (AHN) – Members of Congress are renewing their calls for tough budget cutting after a new Congressional Budget Office report this week said Social Security will pay out $45 billion more in benefits than it takes in this year.

President Obama spoke about the need to reduce the deficit during his State of the Union address on Tuesday but offered no specific proposals for Social Security.

The Congressional Budget Office issued its warning while the Dow Jones Industrial Average rose above 12,000 for the first time since June 2008 in a sign the economy is recovering.

Nevertheless, the housing market remains depressed and joblessness hovers around 9.4 percent.

The CBO said legislative changes are the only way to prevent Social Security funds from becoming depleted.

The portion of the fund that provides benefits to disabled persons is the weakest, heading toward depletion by 2017, the CBO reported.

The CBO, which does economic analyses for Congress, said the nation’s deficit would reach $547 billion from 2012 through 2021 at the current rate.

Obama called for greater cooperation among political parties to reduce the deficit.

Some members of Congress are skeptical about the effectiveness of his plea for unity on budget-cutting.

Sen. Olympia Snowe (R-ME) told reporters that it “remains to be seen” whether Obama will be successful in getting the response from Congress he seeks.

Senate Budget Committee Chairman Kent Conrad (D-ND) said Obama needs to do a better job of explaining to Americans the seriousness of the budget deficit.

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