Social Security cannot afford to pay all of the benefits it has promised. Beginning in 2017, it will run cash deficits that get bigger every year.
As Americans today fulfill the annual ritual of filling out income tax returns, some cold comfort can be gleaned from the debate over creating voluntary personal accounts for younger workers in Social Security. Even though the system is unsustainable and a raw deal for younger workers, Social Security taxes are the largest taxes most younger workers pay. In fact, for three-quarters of Americans, Social Security—not federal income taxes—takes the biggest bite out of every paycheck. That’s why younger workers need optional large personal accounts that they would own, control, and be able to pass along to their children and grandchildren. It’s their money.
Social Security has a problem, and we need to fix it. Personal accounts are the solution.
For Most Americans, Social Security Is the Largest Tax They Pay
Source: Congressional Budget Office