Friday, August 20, 2010

The Treasury And Social Security Lost Track Of $25 Billion

How the hell does this happen and why is it becoming more common place that this is happening? How do you lose $25 Billion dollars? Especially on something that the olders rely on for security and bills ( even though it hardly pays out anything) like Social Security?

Zero Hedge: I have been keeping an eye on the monthly numbers for the Social Security Trust Fund for some time. The 2010 revenue numbers have been terrible. They are running 3% below last year’s very crummy results. I was anticipating that the 2010 top line would look like 2009. Unemployment has been steady at just below 10% for a long time. There was no logical explanation for the continued drop in YoY payroll tax receipts. So I was confused.

Two important sources have “explained” this drop. Both the SSTF and the CBO have confirmed that somehow there was a miscount over at Treasury for $25-29 billion.

The explanation from the CBO today:

Receipts from social insurance taxes are also expected to decline this year—by $29 billion (3.2 percent) from last year, mostly because of an adjustment by the Treasury to correct for the allocation of receipts in earlier years.

The explanation from the SSTF in their August report to Congress:

The estimated decline in trust fund income from 2009 to 2010 is due to the economic recession and to an expected $25billion downward adjustment to 2010 income that corrects for excess payroll tax revenue credited to the Trust Funds in earlier years.

Read more on Zero Hedge

h/t I have a title for this

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