Cost of Fixing Social Security Escalates
New York Times Online (04/09/03)

Social Security is $10.5 billion short of funds, and Stephen Goss, the agency's chief actuary, has informed the Senate Finance Committee that the deficit could be eliminated over the next 75 years through a 13 percent benefits reduction, an almost 16 percent increase in payroll taxes, or a 15 percent cut in benefits for those who just became eligible this year. However, Goss also warned that the longer Congress waits before acting, the higher the shortfall will be. President Bush has proposed letting younger workers invest some of their payroll taxes in personal investment accounts, but critics say this could be too complicated and expensive, and in any case no change on that front is expected until after the 2004 election.


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