For decades, Social Security amassed surpluses from payroll taxes, credited to a trust fund of Treasury securities. But those securities aren’t actual investments – they’re government IOUs. As payouts now exceed contributions, the program draws down its principal, relying on increased taxes or borrowing to cover the shortfall. Once the trust fund runs dry, Americans’ benefits could face cuts of nearly 25%.
To learn more about Social Security and the Hoover Institution’s Tennenbaum Program for Fact-Based Policy, be sure to visit: hoover.org/tennenbaum
