Biden’s fiscal path is not sustainable: Phillip Swagel
Congressional Budget Office Director Phillip Swagel discusses Biden’s plan to address social security insolvency in his federal budget proposal on ‘Cavuto: Coast to Coast.’
Social Security is on a fiscal trajectory that could result in benefits being cut by about 25% a decade from now if Congress fails to act, the director of the nonpartisan Congressional Budget Office (CBO) said Monday.
In an appearance on Fox Business Network’s "Cavuto Coast to Coast" CBO Director Phillip Swagel explained to host Neil Cavuto, "And this is the challenge, I’ll say first is that the Social Security Trust Fund is exhausted in 2032 in our projections. So benefits will be reduced by about 25% after that time. So doing nothing doesn’t save Social Security actually."
Once Social Security’s major trust fund, the Old-Age and Survivors Insurance Trust Fund, is exhausted, the program will have to rely on incoming payroll tax receipts and be automatically required to reduce payments to beneficiaries below their current levels. Swagel said the federal government would "need about an additional $250 billion to keep benefits just within this decade, and in the next decade it’s $8 trillion."
US NATIONAL DEBT TO RISE BY $20 TRILLION OVER THE NEXT 10 YEARS: CBO