Social Security Report

Social Security fix would require big tax increase

Preserving Social Security for the next 75 years without reducing any projected benefits would require an immediate and permanent 3.4 percent payroll tax increase, the Congressional Budget Office said Tuesday in a new report looking at long-term budget challenges that shows there are no easy options left. The new CBO projections show that spending is on pace to be 26.2 percent of the economy in 25 years — up from about 21 percent now — and powered by a sharp rise in expected interest rates. Read more.