Trustees warn Social Security fix could require 40% tax hike
"Trustees warn Social Security fix could require 40% tax hike
Funding cliff nears: The retirement trust fund is projected to run out by late 2032, after which only about 77–78% of scheduled benefits could be paid.
Cost of delay: Fixing the shortfall now would require a 34% payroll tax hike or 25% benefit cut, but waiting until 2034 could push that to 40% or 29%.
Drivers of crisis: Lower fertility, reduced immigration, income shifts above the tax cap, and recent tax law changes have worsened the 75-year shortfall to $30.3 trillion."
