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In this case, the payroll tax would be increased to 16.65percent at the point of trust fund exhaustion in 2040 and continue rising to 17.78percent in 2080.
• Similarly, benefits could be reduced to the level that is payable with scheduled tax rates in each year beginning in 2040. Under this scenario, benefits would be reduced 26percent at the point of trust fund exhaustion in 2040, with reductions reaching 30percent in 2080. (The Board of Trustees, pg 16)
There is an alternative method to save and protect social security benefit budget by extending the retirement age. Currently, the life expectancy rate in United States has been increased since 1940...
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