More than 55 million Americans receive Social Security benefits, annually, making it the nation's largest social welfare program. 725 billion dollars of your payroll and income taxes last year went to Social Security disbursements -- That's about 60 billion dollars in benefits each month. It's no wonder politicians on both sides of the aisle are always trying to convince voters that they have the plan to keep Social Security intact.
The problem is Social Security, as we know it, is currently living on borrowed time. To understand the issue let's first take a quick history lesson.
The Social Security tax was created as part of President Franklin D. Roosevelt's New Deal. Born out of the Great Depression, Social Security was originally a retirement program—nothing more. Now, the program distributes several social welfare and insurance benefits.
Funded largely by payroll taxes, Social Security keeps roughly 40 percent of all Americans aged 65 or older out of poverty. For 26 percent ofRead More »from Why Social Security is Running Out of Money: Just Explain It