Upcoming Social Security Tax Hikes Can Threaten Retirement Benefits

Publication Date: August 1987

Publisher: Heritage Foundation (Washington, D.C.)

Author(s): Peter J. Ferrara

Research Area: Banking and finance

Keywords: Social security

Type: Report

Abstract:

To ensure continued U.S. economic growth, the creation of hundreds of thousands of new jobs, and the health of Social Security, the scheduled 1988 and 1990 tax hikes should be canceled. To give long-term financial stability to the Social Security system and to avoid permanently even larger payroll tax hikes, fundamental reforms are needed to allow the baby boom generation to rely more on the private sector for its retirement benefits than on Social Security and Medicare. Failure to take such action means that the Social Security system’s problems will remain chronic and that today’s young workers will face gloomy retirement prospects.