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May 26, 2013

Reallocation Is The Way To Go

     The National Academy of Social Insurance (NASI) has issued a news brief discussing the issues concerning the looming shortfall in the Disability Insurance Trust Fund in 2016. The obvious solution is a temporary reallocation of more of the FICA tax to the Disability Insurance Trust Fund. Reallocations have been made -- in both directions -- eleven times in the past. What is unclear is whether Republicans will try to hold Social Security disability hostage this time. If they do hold it hostage, what ransom will they demand?

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