Are Tax Hikes the Only Solution to Social Security's Impending Financial Shortfall?
Social Security is on the verge of a major financial crunch. In the coming years, the program expects to owe more in scheduled benefits than it collects in payroll tax revenue (its primary source of funding) as baby boomers stage a mass exodus from the workforce.
Thankfully, Social Security has some cash reserves on hand to tap, known as its trust funds. But once those trust funds run dry, Social Security may have to slash benefits to the tune of about 20%.
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Source Fool.com
