Though revenues from the U.S. Government rose 12 percent over fiscal 2006, to $2.4 trillion, the future costs for social insurance programs such as Medicare and Social Security will be trillions more than initially projected.
According to a report released jointly by the Treasury and the Office of Management and Budget, Social Security and Medicare will see a $44.1 trillion shortfall over the next 75 years — a deficit more than $4 trillion larger than that projected in 2005.
Without fundamental reform, the agencies cautioned, the cost of the programs is projected to triple as a percentage of the U.S. economy by the year 2080.
In a statement, Treasury Secretary Henry Paulson said, "The president's economic agenda has produced a strong economy, creating millions of jobs, spurring revenues and meeting the president's deficit-reduction goal well ahead of schedule. This report also demonstrates the urgency of addressing Americans' retirement security.”
