Turns out it’s not baby boomers who have taken the most from Social Security - CNBC
that were made in 1939 adding benefits for spouses and minor children of retired workers, as well as survivor benefits for families if a worker died. At that time, benefits were tied to average earnings.
Those changes meant that some retirees received more in benefits than they had contributed to the system. Payroll tax receipts were used to make those payments.increasing reserves, the system also misses out on interest the money could be earning.current participants, because they have to contribute money both for their benefits and to make up for those missing funds.
As it stands, today's benefits are roughly in line with costs, and consequently are not too generous, Sanzenbacher said. "But we need to deal with this legacy debt," he said.There are a couple of approaches that could be used to make up the shortfall, according to the research.Another possible solution would be to increase taxes temporarily until a sufficient trust fund is established. Once that money is there, the system could return to today's level of payroll taxes.
The tax increases could come in several forms: by increasing the payroll tax percentage and maintaining the current Social Security cap of $132,900; increasing the payroll tax and eliminating the payroll tax cap; or shifting from a payroll tax to income tax.
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