On Monday a new report surfaced from the Bush administration announcing that Social Security is facing a $13.6 trillion shortfall and by delaying reforms is not fair to the younger workers.

A way to fix this shortfall the Treasury Department said that there would need to be a combination of benefit cuts and tax increases. However, the White House has said that President Bush is opposed to raising taxes.

The report also said, “Social Security can be made permanently solvent only by reducing the present value of scheduled benefits and/or increasing the present value of scheduled tax increases.”

Treasury Secretary Henry Paulson, Bush’s point person on Social Security reform had said that he has had a number of discussions with members of Congress from both parties regarding the issue of fixing the problems in Social Security with the looming retirement of 78 million baby boomers.

Even though Democrats have been fighting to protect the current benefit levels, the Republicans have been adamant that taxes should not be raised to cover the Social Security shortfall.

[via CNN]

Tags: Business, Social Security, Debt, Baby Boomers, Economy

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