Are you one of the 53 million Americans now receiving monthly Social Security checks?
If so, your Social Security expectations currently are “safe.” Monthly checks, averaging $1,067, will still be coming to you.
But what about younger Americans, who expect Social Security checks some years off in the future? What about the numerous “baby boomers”?
The number of Americans promised Social Security checks is expected to grow from the present 53 million to 122 million people — one-fourth of our population! — in 75 years.
Social Security supposedly is financed by 12.4 percent taxes on wages up to $106,800, paid by employers and employees. But over the years, the federal government has “borrowed” and already spent the Social Security money! So there will have to be more taxes or more borrowing to make Social Security checks good.
The national debt is nearly $13 trillion. And future Social Security tax collections are expected to fall short.
What then? Do we want to spend now and make future taxpayers pay more?
Many people don’t want to face financial reality now. But what are the options?
For one thing, the federal government will have to raise taxes or borrow more money to “pay back” the Social Security money it has already spent for other things.
Some suggest the Social Security payroll taxes will have to be raised from the current 12.4 percent to 14.6 percent of wages up to $106,800 to pay 122 million expectant Social Security recipients. Will enough money “be there”?
Social Security expects to come up a shocking $5.3 trillion short over the next 75 years. Well, we may say, “we” won’t be here then. But some of our children and grandchildren will be. What is in their best interests?
In the meantime, the federal government will have to make Social Security checks good by paying back some of the money it has borrowed from Social Security taxes. That will mean more taxes or more borrowing.
U.S. taxpayers will have to pay someday!