Will Social Security Face an Imminent Crisis?
There is an impending crisis looming for Social Security, with its funding far short of what is needed to support the program into the future. The Social Security program currently pays out more in benefits than it receives in contributions. The gap is expected to increase to $30 billion by 2034. In order to keep the program solvent, Congress will need to make significant changes to the program. One option is to reduce benefits, which would impact retirees and their families. Another option is to raise taxes, but that would cause more people to lose their jobs. A 3.8 percent increase in the Social Security payroll tax would be necessary to close the funding gap. However, that tax increase would disproportionately affect low-income families and seniors.