In order for Social Security to pay out scheduled benefits, and remain solvent in the long run, payroll taxes would have to be raised “immediately and permanently” by 4.6 percent. (Photo: Shutterstock)
Massive budget deficits over the next 30 years are expected to nearly double the country's total debt, from 78 percent of gross domestic product, where it is today, to 144 percent of GDP by 2040, according to the Congressional Budget Office's annual Long-Term Budget Outlook report.
The CBO's extended baseline projections are based off the same assumptions the agency uses to forecast its 10-year projections. Both forecasts presume current law remains the same, mandatory programs are extended, and Social Security and Medicare spending continue as scheduled even after their respective trust funds run dry.
CBO projects Social Security's two trust funds will be depleted in 2032, before the Social Security Administration's 2035 projection.
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