Earlier this year, the Congressional Budget Office (CBO) estimated that the fiscal 2001 surplus, including the Social Security and Medicare trust funds, would come in at a stunning $280 billion. But last week, reacting to the stagnant economy and the newly enacted tax rebates, the CBO sharply revised that figure down to a not-as-impressive $153 billion. This move suggested that the government would have to draw down about $9 billion of the Social Security surplus to fund this year's operations.
The… more