Social Insecurity

The Social Security Trustees' Report is out, and it's...not good.

For the first time in nearly 30 years, the system will pay out more benefits than it receives in payroll taxes both this year and next, the government officials who oversee Social Security said on Thursday.

And while Social Security cash flow will likely head back into the black for a few years after that, starting in 2015 it looks to stay in the red for the long haul, the trustees said in their annual report.

"The improving economy is expected to result in rough balance between Social Security taxes and expenditures for several years before the retirement of the baby boom generation swells the beneficiary population and causes deficits to grow rapidly," Treasury Secretary Tim Geithner said.

As for this year's dip into the red, Geithner said the recession is to blame.

Well yes, 9.5% unemployment means less payroll taxes being paid in to cover SS payouts.  There's a no brainer.  Medicare is doing a lot better with the Health Care Reform bill boosting the program's bottom line until 2029, but the real question is what will Obama's Fiscal Commission do about it?  Raise taxes?  Cut spending?  Both?  And by how much?

Even more than his two SCOTUS picks, this could be Obama's lasting legacy.  Clinton and Bush punted on this majorly.  Obama doesn't have that luxury.