Yesterday, Henry Paulson, Secretary of the Treasury, gave some grim news about Social Security and Medicare. If left unchanged, by 2041, Social Security will only be able to pay out 78% of benefits, unless the government begins paying back what it owes to the fund. In order for the program to be fully funded and paying out 100% of benefits, they estimate that they would need to increase the payroll tax rate from 12.4% to 14.1%.
Medicare is even worse. At the current rate, it’ll go bust by 2019, in eleven years! The cost to fix? Increase the payroll tax from 2.9% to 6.44%.
Source: CNN Money