A Social Security Bailout Would Cost Younger Workers $157,000 in Higher Taxes
The Social Security trust fund will go bankrupt in 2033 according to the Old-Age, Survivors, and Disability Insurance (OASDI) trustees. With neither Democrats nor Republicans appearing willing to reduce benefits or increase the retirement age, the only way to make Social Security solvent is to increase revenue. While this can be done, it will come at the great financial detriment of young people entering the work force who are already struggling with the cost of living.
Romina Boccia and Ivane Nachkebia, director and research consultant for budget and entitlement policy at the Cato Institute, respectively, calculated just how expensive eliminating the Social Security shortfall would be. The researchers cite the OASDI’s trustees’ report, which concludes that, to eliminate Social Security’s projected $25 trillion deficit over the next 75 years while maintaining planned benefits, “Congress would need to raise the payroll tax rate immediately and permanently by 3.65 percentage points.”
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Article from Reason.com
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