Social Security is facing growing financial pressure as the program now spends more on benefits than it collects in payroll taxes. For many years, Social Security brought in more money than it paid out. That extra money was saved in reserves and invested in U.S. Treasury bonds. Those reserves are now being used to help … Read more
Social Security’s long-term funding crisis is often blamed on America’s aging population, falling birth rates and the shrinking number of workers supporting retirees. But another factor is adding pressure to the system: income inequality. As more income flows to high earners, a larger share of wages is falling above the Social Security payroll tax cap. … Read more
The debate over undocumented immigration often focuses on border security, jobs, public services, and legal status. But there is another issue that receives less attention: Social Security funding. Many undocumented immigrants work in the United States and pay taxes, including payroll taxes that support Social Security. However, many of these workers are unlikely to receive … Read more