Social Security, which has been a key element in providing retired individuals with financial assistance by the government, might come to an end with funds drying up. The Internal Revenue Service is responsible for collecting tax on Medicare and social security from citizens who are employed and later providing them with social security payouts post-retirement. However, over the past couple of years, the IRS has paid out more than what revenue it has collected, and the trust funds are expected to be drained out by 2035.
The IRS has failed to collect a whopping $ 470 billion per year, which has now added up to this impending crisis. This comes as a direct endangerment of millions of retired Americans, who highly rely on these payouts. To tackle the situation and avoid the default, the Republican lawmakers persisted in the deal of debt-ceiling, discouraging President Joe Biden in proceeding with increased IRS funding as previously stated in his budget proposal.
Brett Arends of MarketWatch has stated that according to the calculations made by the Congressional Budget Office, the deficit of the IRS could be reduced with increased funding. However, $ 21 billion IRS funding has been cut from its $ 80 billion budget over 10 years. This comes at $ 2.1 per year to make up for the deficit of the unpaid $ 470 billion in tax revenues.
President Biden Proposes To Employ 87,000 For Smoother Social Security System
President Joe Biden’s administration has proposed employing 87,000 personnel for the IRS, this addresses the ill-staffed IRS which has lost 50,000 employees in the last 5 years. The increased workforce will boost the social security system, by providing better and more efficient services to citizens. However, social security is still in jeopardy until appropriate funds are accumulated to deal with the debt-ceiling.