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Spending on the Social Security program will exceed its dedicated tax revenues, on average, by about 12 percent over the next decade, CBO projects. The gap will grow larger in the 2020s and will exceed 30 percent of revenues by 2030.
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This document is a reprint of Chapter 5 of CBO's publication Options for Reducing the Deficit: 2014 to 2023 (November 2013).
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Extending emergency unemployment benefits would raise economic output and employment in 2014 relative to what would occur under current law, CBO estimates.
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CBO periodically issues a compendium of options—this installment presents more than 100—to inform lawmakers about the budgetary effects of ways to reduce the deficit.
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CBO analyzes the distribution of most federal spending—including transfers such as Social Security benefits—and almost all federal revenues among U.S. households in 2006. Results are provided by type of household and by income group.
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Testimony before the Committee on the Budget, U.S. House of Representatives.
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Federal debt would grow to 100 percent of GDP by 2038 under current law, CBO projects, and would be on an upward path relative to the size of the economy—a trend that could not be sustained indefinitely.
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In the 2011–2012 academic year, 9.4 million students received $34 billion in Pell grants. How would tightening eligibility or changing grant amounts affect the program’s costs or the number of recipients?
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By 2050, one-fifth of the U.S. population will be age 65 or older, up from 12 percent in 2000 and 8 percent in 1950. As a result, expenditures on long-term services and supports for the elderly will rise substantially in the coming decades.
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Spending on means-tested programs and tax credits for low-income households has grown in the past 40 years because of increases in the number of program participants and growth in spending per participant.