Here's How Much Taxes Would Have to Rise to Shore Up Social Security
Social Security is one of the most important entitlement programs in the United States, providing financial support for millions of seniors. Unfortunately, it's not in great financial shape itself.
Each year, a trustees report details the state of the program's trust funds, one of which supports retirement and survivors benefits and the other Social Security Disability Insurance. The 2020 report is out, and it projects that the fund for retirement benefits will run short in 2034 and the one for disability benefits will run short in 2065. If money is diverted from the disability fund -- which many see as the most likely scenario -- then the combined fund will run short in 2035.
While that doesn't mean no benefits would be paid, it does mean a substantial cut would occur. This could be avoided by increasing payroll taxes, but the increases needed to fully fund the program would be big.
Source Fool.com
