The Impact of Federal Deficits on the Social Security Contributions of Working Families in Los Angeles County

Publication

The Impact of Federal Deficits on the Social Security Contributions of Working Families in Los Angeles County

Abstract

The Special Investigations Division of the House Committee on Oversight and Government Reform examines the impact of federal deficits and potential failure to repay Social Security trust funds on working families in Los Angeles County. It reveals that over the next decade, these families will contribute $196 billion to the trust funds, with nearly one-third, or $63 billion, borrowed by the government to cover current spending. Each worker in the county is projected to borrow over $15,000 from their contributions. Failure to repay these funds could lead to Social Security insolvency by 2017, jeopardizing retirement security for local families. The report attributes a significant portion of this borrowing to the 2001 tax legislation, highlighting its regressive wealth transfer from low- and middle-income families to the wealthy.