Social Security’s Rising Shortfall

Social Security’s shortfall has more than tripled since 2010. Filling the gap with revenue would require a 3.3 percentage point increase in the payroll tax, which would mean thousands of dollars in additional taxes each year for middle-class households. Congressional failure to address the unsustainable growth in spending means that Social Security solvency becomes much harder to reach with each passing year.

Download
image
Download
floor chart

Updated July 19, 2024

Source: Social Security Administration

Related Charts

Big Government, High Middle-Class Taxes

In European welfare states, middle-class workers—not just the wealthy—shoulder a massive tax burden and get a highly intrusive government for their money. A lower-income European earning $40,000 pays $6,000 more in taxes than a similar American. On the current fiscal course, Americans will face European-style taxes.

Download
image
Download
floor chart

Created November 8, 2019

Source: Heritage Foundation Analysis

Related Charts

Three Layers of Massive Debt

While the current national debt of $33.6 trillion is deeply concerning, Americans should be equally worried about the gap between future tax revenues and promised benefits for Social Security and Medicare, which exceeds $75 trillion.

Download
image
Download
floor chart

Updated October 24, 2023

Source: Social Security Administration

Related Charts

Interest Costs a Major Burden

Interest payments for the national debt are a two-fold problem. First, today’s interest rates are far below historical averages, and expected increases will cost hundreds of billions of dollars per year. Second, chronic high deficits are causing debt to grow faster than the economy. The combined effect will eventually cause interest payments to consume 6.5% of the economy per year. Elected officials have a responsibility to end deficit spending and avoid the mounting fiscal crisis.

Download
image
Download
floor chart

Updated February 8, 2024

Source: Congressional Budget Office

Related Charts

Total Government Spending More Than Quadruples

State and local government spending imposes a significant additional burden on taxpayers, on top of federal spending. Even after adjusting for inflation, combined per-person government spending has more than quadrupled since the mid-1960s.

Additional Sources: U.S. Census Bureau, St. Louis Federal Reserve.

Download
image
Download
floor chart

Updated August 31, 2023

Source: Office of Management and Budget

Related Charts
Related Charts

Tax Freedom After 105 Days

In 2019, Tax Freedom Day—the day after which Americans have worked enough days of the year to pay their federal, state, and local taxes—occurs just one day after Tax Day, April 15, the deadline for filing federal tax returns. According to the Tax Foundation’s annual “Tax Freedom Day” report, Americans will work for 105 days of the year to pay their collective $5.42 trillion tax bill—a figure equal to about 29% of Americans’ incomes.

Download
image
Download
floor chart
Related Charts

Trillion-Dollar Deficits

Without budget cuts and reforms, the government will continue to produce large deficits. The deficit is projected to surpass one trillion dollars every year from now on unless Congress changes course.

Download
image
Download
floor chart

Updated June 27, 2024

Source: Congressional Budget Office

Related Charts

Debt Limit Appears Unlimited

The debt ceiling or debt limit is supposed to ensure that Congress is confronted with the consequences of out-of-control spending and borrowing in Washington. Like an alarm clock, the debt ceiling can offer a fiscal check on the government’s finances and encourages congressional deliberation of policies to control spending and debt. However, in recent years Congress has repeatedly suspended the debt ceiling, allowing the debt to rise unchecked. Congress must not suspend the debt ceiling again. Congress should enact fiscal controls to put the budget on a path to balance before raising the debt ceiling further.

Download
image
Download
floor chart

Updated March 28, 2024

Source: OMB

Related Charts

Funding the Federal Government

Payroll taxes, those taxes paid by wage earners for Social Security and Medicare, have become an increasingly important revenue source for the federal government.

Download
image
Download
floor chart

Updated March 22, 2023

Source: OMB

Related Charts