Should We Tax the Rich to Save Social Security?
Despite the program's incredible track record and its ability to significantly reduce elderly poverty rates, Social Security is facing some serious financial hurdles in the years to come. According to the 2020 Social Security Board of Trustees report, the most successful social program is contending with a nearly $17 trillion funding shortfall between 2035 and 2094. Between 2021 and 2035, a number of ongoing demographic changes are expected to result in the depletion of Social Security's nearly $2.9 trillion in asset reserves.
Although Social Security doesn't need a dime in excess cash to remain solvent or make payouts to eligible beneficiaries, the lack of any asset reserves would necessitate across-the-board benefit cuts that could total as much as 24% for retired workers. This long-term funding shortfall is something lawmakers have known about for 35 years and counting. The question is, how best to fix it?
Image source: Getty Images.
Source Fool.com
