Georgia Nabors

Sep 23, 2024 | brookings.edu | Georgia Nabors |Louise Sheiner

Social Security’s costs have exceeded its income from taxes and interest since 2021. The government currently relies on the assets in the Old-Age, Survivors, and Disability Insurance (OASDI) trust fund to help finance benefits. Once the trust fund is depleted—which Social Security actuaries put at 2035—revenues will be sufficient to cover only 83% of benefits. Raising the full retirement age would improve the financial outlook of the Social Security system.

Jan 3, 2024 | brookings.edu | Georgia Nabors |David Wessel

Once again, some lawmakers in Congress are proposing the creation of a fiscal commission—a body other than the standing committees of Congress—to recommend changes to federal spending and taxes in order to restrain the growth in the federal debt. This explainer looks at the history of fiscal commissions and current proposals to form another one. The federal debt is now close to 100% of GDP. This is close to the peak reached after World War II.

Sep 18, 2023 | brookings.edu | Louise Sheiner |Georgia Nabors

Social Security is critically important for retired and disabled Americans, providing about 1/3 of their income on average.1 But the program faces a long-run financing shortfall. By 2034, the trust funds which have been supplementing dedicated Social Security payroll tax revenues in recent years are projected to be depleted. At that time, incoming tax revenues will be sufficient to pay only about 80% of scheduled benefits.