Falling Short: Social Security, Medicare, and Payroll Taxes

Published: April 10, 2018

Many people believe Social Security and Medicare are fully funded by payroll taxes. In reality, both programs are increasingly relying on regular tax revenue and ultimately more federal debt to stay afloat. Unless both programs are put on sustainable fiscal path, their ongoing expansion will crowd out all other government spending.

Discussion Questions

1. What can be done to reform Social Security to put it on a financially viable path?
2. How can Medicare be reformed while still protecting low-income seniors?

Additional resources 

• Read John Cogan’s book The High Cost of Good Intentions: A History of U.S. Federal Entitlement Programs to learn more about the federal program; available here.
• Listen as John Cogan talks with EconTalk host Russ Roberts about Cogan's book, The High Cost of Good Intentions, available here.
• Read John Cochrane’s blog on John Cogan’s book, The High Cost of Good Intentions, available here.
• Read John Cogan’s chapter, “Entitlements and the Budget,” in Blueprint for America, available here.
• John Cogan discusses social programs on Area 45: Is Entitlement Reform Possible? Available here.