Social Security and the Impending Depletion of Funds
The debate about Social Security’s depleting fund has been going on for years. Recently, analysts have begun discussing possible solutions to ensure the availability of Social Security for future generations. The Administration’s 2005 trustees report predicted massive annual deficits starting by 2017. This means that by 2017, this Administration will be putting out more money than it’s collecting through taxes. What’s even more troubling is that there’s no definite plan of action to permanently fix this huge problem.
One idea was to increase the payroll taxes by 2% and over a 75 year period, the deficit problem was expected to be resolved. However, the future deficits are growing so large that this modest tax increase will still leave a large shortfall. Social Security’s impending crisis cannot be resolved with this small tax increase.