The Congressional Budget Office has released new projections for Social Security’s finances over the next 75 years, for which they project an actuarial deficit of 3.36 percent of taxable payroll. CBO states:
That means, for example, that if the Social Security payroll tax rate was increased immediately and permanently by 3.36 percentage points—from the current rate of 12.40 percent to 15.76 percent—or if scheduled benefits were reduced by an equivalent amount, then the trust funds’ projected balance at the end of 2087 would equal projected outlays for 2088.
In addition, CBO provides a closer focus on how Social Security’s finances will evolve over the next quarter century.
This, folks, is how it’s done: solid, detailed analysis, presented with plenty of charts and tables to make it understandable. Check it out here.