Social Security to be Depleted by 2033

Social Media Industry in Turmoil | 15 Stock Picks That Billionaires Love15 Stock Picks That Billionaires Love | Created for {EMAIL} | [Web Version]( June 6, 2022 CONNECT WITH KIPLINGER  [LinkedIn]( [Facebook]( [Twitter]( [Instagram ]( [Youtube]( [SIGN UP]( ⋅ [WEBSITE]( [] What's in the Works [] Assets of the Social Security Trust Fund will be exhausted in 2033, a year earlier than last year’s estimate, according to the annual Social Security Trustees’ Report. Benefits payouts for Social Security (OASI) will be limited to 76% of obligations when that happens. When assets are exhausted, benefit payouts will be limited to current income, unless supplemental government appropriations are made. The disability fund (DI) will not see its assets exhausted until 2057, at which point benefits would be cut by 9%. The assets supporting payouts from Medicare part A, the hospital insurance fund (HI), will last until 2026, at which time benefits would also be cut by 9%. Next year’s report will also likely show earlier exhaustion dates, since increases in benefit amounts to compensate for inflation will create a faster payout rate. To fix Social Security, these proposals have been discussed: - Cut benefits by raising the retirement age beyond the current age 67, cut benefits for high income recipients, or by not granting full adjustments for inflation. - Raise taxes. Currently, both employers and employees pay 6.2% of wages and salaries. Increase the taxable maximum. Currently, income above $142,800 is not subject to Social Security tax. Tax fringe benefits which are currently untaxed, such as health insurance benefits to workers. A calculator laying out how much a fix would cost can be found at the website of the Committee for a Responsible Federal Budget, [(. [] Latest [] The social media industry has entered a period of turmoil and won’t emerge from it anytime soon, according to the latest issue of The Kiplinger Letter. Competition is heating up, as evidenced by the rise of TikTok, the Chinese social media app with over 800 million global users (100 million in the U.S. alone). TikTok is reshaping the industry in its image, as more apps roll out similar short-form video features and invest in artificial intelligence-enabled content moderation. The company is also eating into the ad revenues of social media giants like Meta ([FB](), Facebook’s parent company. Meanwhile, regulatory threats are looming. First up: The European Union’s Digital Services Act, which will impose extensive new reporting requirements on services with 45 million or more users, starting in 2024. Even the U.S. looks increasingly friendly to stronger oversight. Several bills under consideration by Congress have garnered bipartisan support. Many states, most notably Florida and Texas, are considering or have already passed laws to rein in the social media industry, though they me vulnerable to legal challenges. 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