Taxation Pensions and the Issues Associated the Social Security Trust Fund

Taxation Pensions and the Issues Associated the Social Security Trust Fund

The fact of the matter is that the Social Security Trust Fund is comprised of two separate funds. The first of these is of course the OASI Trust Fund (Old Age and Survivors Insurance Fund). whereas the second is that of the DI Fund (Disability Fund) (Shelton, 2008). Whereas the first fund is the one that is of course the largest and is most referenced within the media and concerns over budgeting etc, the second one is lesser known and is primarily responsible for providing payments to those individuals who had been working at one point but due to injury or illness are no longer capable of performing work. Combined, both programs owe the American people approximately 2.93 trillion dollars as of the end of 2011 (Papps, 2012). The number in and of itself is but a snapshot of current obligations and as such cannot be viewed as a means of seeking to understand the level to which the program will be able to handle changes in economics or the retirement of subsequent generations. The unfortunate fact of the situation is that the social security program itself is suffering from what many have called an eventual and sustained death. Due to the fact that the government has mismanaged the situation with Social Security for such a longer period of time, short-sightedly borrowing from it at every available instance, the level to which the program can sustain itself and continue to cover the liabilities that it necessarily engenders is not projected to take place long after the year 2030 (Quirk, 2003).

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