Kotlikoff: Social Security Deficit Just Increased by $6 Trillion

The system is now 32 percent underfunded. In other words, Social Security’s 12.4 percentage point payroll tax rate must be raised immediately and permanently by 32 percent, which is 4 cents out of every dollar we earn… The longer we wait, the higher the tax hike will have to be, which means the larger the fiscal damage our children will face. More