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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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
