Just in time for the upcoming anniversary of the Social Security Act of 1935, the 2017 Annual Report of the Social Security and Medicare Board Trustees is out; and, once again, the news is sobering.
According to a summary of the report, "Both Social Security and Medicare face long-term financing shortfalls under currently scheduled benefits and financing." Additionally, the debate over health care has put Medicaid in the spotlight, so it's time for a Q&A on three of the largest components of the federal budget, which account for about $2.4 trillion of spending.
Q: How is Social Security funded?
A: It's a pay-as-you-go system, funded by payroll taxes (the...