Workers are back to paying the normal rate of the Social
Security payroll tax, but one expert on the program says it will
continue to face problems.
Michael Tanner, senior fellow for the Cato Institute, says
Social Security ran a deficit of nearly $150 billion last year.
About $100 billion of that was due to the payroll tax cut, with
another $50 billion the result of changing demographics.
"Even with that $100 billion going back into Social Security,
Social Security will run a deficit again this year of somewhere
between $50 and $70 billion, and that's only going to get worse
each year going out," he tells OneNewsNow.
"The trust fund -- assuming you believe in the trust fund -- is
totally exhausted by 2036. So Social Security has got real problems
The payroll tax of 6.2 percent was reduced by two percentage
points for the last two years. Employers, meanwhile, continued to
pay the same 6.2 percent. The fiscal cliff agreement allows the tax
cut to lapse.
An expert in retirement security is adding his two cents to
thoughts on this year's changes with Social Security.