This is a chunk of the testimony from yesterday's first House of Representatives hearing on Social Security. Forgive the caps please; this was carved out of the source code for a PBS web page.

David Walker
SOCIAL SECURITY IS EXPECTED TO RUN A NEGATIVE CASH FLOW STARTING IN 2018. THAT MEANS IN THAT YEAR, THERE'S NOT ENOUGH MONEY GOING TO BE COMING IN TO PAY BENEFITS AND EXPENSES, AND WHAT WILL HAVE TO HAPPEN IS WE'LL HAVE TO START CASHING IN S OME OF THESE BONDS THAT HAVE ACCUMULATED OVER TIME. TO CASH IN THESE BONDS, YOU'LL EITHER HAVE TO INCREASE TAXES, CUT OTHER SPENDING, OR INCREASE THE DEBT HELD BY THE PUBLIC. 2042 IS THE DATE THAT THE TRUSTEES ESTIMATE, BY THEIR BEST-ESTIMATE INTERMEDIATE ASSUMPTIONS, THAT THE TRUST FUND WILL BECOME EXHAUSTED. IN 2042, IF THEIR ESTIMATE IS CORRECT, THEN BENEFITS WILL HAVE TO BE CUT PRECIPITOUSLY AND DRAMATICALLY ACROSS THE BOARD BY 27%, AND THEY WILL HAVE TO BE CUT GRADUALLY MORE AS TIME MOVES ON

Ben Cardin (D-Maryland):
IF YOU TAKE WHAT THE PRESIDENT SUGGESTED IN HIS STATE OF THE UNION ADDRESS, 4% OF THE PAYROLL TAX, OR ABOUT ONE-THIRD, THAT IN AND OF ITSELF, OUT OF SOCIAL SECURITY, MR. LEVIN SUGGESTS, POINTED OUT IN HIS OPENING COMMENT, THAT IN AND OF ITSELF WOULD ACCELERATE THE INSOLVENCY BY ABOUT 11 YEARS, USING THE ACTUARIES' ASSUMPTIONS. I ASSUME THAT YOU AGREE WITH THAT.IS THAT CORRECT?

David Walker
THAT BY ITSELF...

Ben Cardin
ITSELF.

David Walker
...BUT I DON'T THINK EVEN THE PRESIDENT IS TALKING ABOUT DOING THAT BY ITSELF.

Ben Cardin
I'M TRYING TO ISOLATE THE POINT-- I'M GOING TO COME RIGHT BACK TO IT-- BUT THAT BY ITSELF ACCELERATES THE INSOLVENCY BY 11 YEARS. BY ITSELF IT WOULD ACCELERATE IT.

David Walker
I DON'T KNOW ABOUT THE 11 YEARS, BUT IT WOULD ACCELERATE IT.

Ben Cardin
THAT CHANGE THEN MAKES IT MORE COMPLICATED AND DIFFICULT, AND MORE CHANGES ARE GOING TO BE NEEDED IN ORDER TO DEAL WITH THE INSOLVENCY ISSUE, IF WE JUST DEALT WITH IT DIRECTLY.

David Walker
IT WILL MEAN THAT YOUR...THAT THE SENSE OF URGENCY...WELL, NOT ONLY WILL THE NEGATIVE CASH FLOW INCREASE, BUT IT ALSO MEANS THAT POTENTIALLY THE INSOLVENCY DATE WOULD GET CLOSER, DEPENDING UPON WHAT OTHER REFORMS THERE ARE.

Ben Cardin
I UNDERSTAND THAT.OTHER REFORMS MEAN MORE REVENUE COMING INTO THE SYSTEM OR BENEFIT CUTS?

David Walker
OR SOME COMBINATION THEREOF.

Ben Cardin
OR SOME COMBINATION THEREOF. THANK YOU.