Payroll-Tax Reallocation Would Rob Social Security and Prevent Necessary Disability Insurance Reforms
Although Social Security’s 75-year shortfall is nearly 10 times as large as that of the Disability Insurance (DI) program, the DI Trust Fund is projected to be exhausted much sooner. According to the Social Security trustees’ 2014 projections, the Social Security (Old-Age and Survivors Insurance—OASI) Trust Fund will be exhausted in 2034, but the DI Trust Fund will run dry in 2016—just two years from now. The DI program’s impending insolvency has caused many to suggest that a portion of the Social Security payroll tax should be “reallocated” to the DI program. A reallocation, however, would not only evade necessary DI program reforms, but would raid Social Security…Read More
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