What are baby boomers? Figure 14.25 The crunch to come... Social Security taxes were raised to build

What are "baby boomers"?

Figure 14.25

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The crunch to come... Social Security taxes were raised to build a surplus... Money paid into the system has been greatly exceeding benefits since 1983. Scale in billions of dollars. I I I 1960 65 '70 I 1 75 '80 Collected But the baby boomers will break the bank... By one government projection, the Social Security system will be paying out more than it is taking in by 2015, and the trust fund will run out of money by the year 2036. Scale in billions of dollars. ||||||| 1 1 1 I 1995 00 105 '10 15 20 Paid out I '85 90 |||||| $300 250 1 1 1 25 30 35 200 150 100 50 $5,000 4,000 3,000 2,000 1.000 0 ...These taxes have increased at a faster rate than the federal income tax Federal taxes, treated as if they were equal in 1982. (1982= 100) Social Security and Medicare Income tax ...Because there will be fewer workers to tax 200 150 100 50 I '80 '81 82 83 84 85 86 87 88 '89 90 91 92 est. How many workers pay into Social Security for each person getting benefits? 3.7 3.2 3.4 3.2 2.9 2.4 2.0 2.0 1970 1980 1990 2000 2010 2020 2030 2040