(Photo: AP)
The Trump administration's 2021 budget proposal projects robust economic growth over the next decade, and in turn higher payroll receipts that would shrink Social Security's swelling deficit.
The budget proposal, released Monday, projects Real Gross Domestic Product will be 2.8 percent in 2020 and 3.1 percent in 2021. From 2022 to 2025, the proposal projects 3 percent GDP growth, ultimately settling at 2.8 percent in 2030.
That kind of robust growth would translate to higher payroll taxes to fund Social Security. According to the White House's budget proposal, Social Security's portion of the payroll tax will generate $1.23 trillion in 2025, $1.59 trillion in 2030, and $12.8 trillion for the next decade.
Rose-colored glasses?
None of those receipts will be enough to cover Social Security's costs.
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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.
