Click here for the answer: last year the trustees estimated that Social Security had an overall 75-year deficit of 1.95% of taxable payroll. This year it's 1.70%. That's a pretty substantial improvement. What caused it?
Click here for the answer: Table IV.B9 has only one significant change from 2007: "Methods and programmatic data." And what might that entail?
Scroll down for the answer: immigrants. To be specific, better estimates of the taxes and benefits received by illegal immigrants — or, as the trustees refer to them, "other-immigrants":
In previous reports, the other-immigrant population was projected using assumed annual numbers of net other immigrants with a static age-sex distribution. For this year's report, the annual numbers of net other immigrants are projected by explicitly modeling other immigrants and other emigrants separately.Translation: instead of just pulling a net number out of a hat, the trustees built a model that estimated the actual demographic characteristics of both immigrants and emigrants. And guess what?
- Illegal immigrants tend to skew young. This benefits the system.
- Young people have more children than older people. This benefits the system.
- Some illegal immigrants pay taxes for a few years and then leave. This benefits the system.