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Medicare, Social Security Owe Up to $52 Trillion to Current Retirees and Workers
Date:12/3/2008

y are receiving in premiums and dedicated taxes:

  • By 2012, one of every 10 income tax dollars will be needed to close the funding gap for Social Security and Medicare.
  • By 2030, almost half of all income tax dollars will be needed to close the funding gap.
  • By 2070, almost 80 cents of every income tax dollar will be needed to cover the cash-flow deficit in the two programs.

"Without reform, paying for elderly entitlements will crowd out other federal spending or will require substantial tax increases," said Rettenmaier.

"The longer we postpone reform, the worse the financial picture becomes," he said. "Procrastinating will make the cost of reform even more painful."

The National Center for Policy Analysis is a nonprofit, nonpartisan organization whose goal is to solve problems by developing and promoting innovative, market-driven solutions.

Link to full study: http://www.ncpa.org/pub/st/st317/st317.pdf

Link to charts: http://www.ncpa.org/email/Figure_I_and_II_Rettenmaier_Study.pdf


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SOURCE National Center for Policy Analysis
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