Established during the Great Depression,
the Social Security retirement system is funded by a
12.4 percent tax, split between workers and employers, on all wages
up to $113,000.
It’s the nation’s oldest entitlement program and one of its most beloved. Yet it’s also a fiscal and demographic disaster that desperately needs to be reformed right now for at least three reasons.
1. Social Security is broke.
Social Security is already paying out more in benefits than it brings in via payroll taxes; it makes up the difference by drawing on surpluses built up over the past decades. According to the most recent report by Social Security’s trustees, those surpluses will be totally gone in 2033 and unless taxes get jacked up, the system will only be able to pay 75 percent of current benefits.
http://reason.com/reasontv/2013/07/10/3-reasons-to-fix-social-security-now
It’s the nation’s oldest entitlement program and one of its most beloved. Yet it’s also a fiscal and demographic disaster that desperately needs to be reformed right now for at least three reasons.
1. Social Security is broke.
Social Security is already paying out more in benefits than it brings in via payroll taxes; it makes up the difference by drawing on surpluses built up over the past decades. According to the most recent report by Social Security’s trustees, those surpluses will be totally gone in 2033 and unless taxes get jacked up, the system will only be able to pay 75 percent of current benefits.
http://reason.com/reasontv/2013/07/10/3-reasons-to-fix-social-security-now
No comments:
Post a Comment