Medicare

But in 1972 the law changed to an automatic COLAs increase based in changes on the annual consumer prices (ssa 4). .
             Social Security had faced many financial problems since its creation. To comprehend the problems of this system is important to know that Social Security is a "pay-as-you-go" program that works fine if there are enough workers to maintain the program going because Social Security is financed by the payroll taxes deducted from workers in order to paid remunerations to retirees. The most serious problem is the aging of about 76 million people called "baby boomers" born between 1946 and 1964 and the lowest level of birthrate ever. These "baby boomers" are about to become entitled for Social Security benefits putting in high financial risk the complexity of Social Security system because there will be less people paying taxes to support the retirees. In addition, people are living longer than the average life expectancy people had when Social Security was created, as a result today's retirees are receiving benefits for more years after they stop working. Due to all this financial problems the Congress passed a law in 1983 to augment the payroll tax rate and increase the eligibility age of receiving benefits. To the little relief of the Social Security the amendments passed in 1983 had created a surplus, collecting more payroll taxes than giving away benefits so the additional money is been saved in more Treasury Bonds generating $44 billion in interests to the trust fund (2Facts 2-4; LeRoy 122). .
             According to Roger LeRoy Miller the Social Security Trust Fund is not trustable because the money from payroll taxes collected in the beginning of the program were taken by the U.S. Treasury in the form of bonds so that the surplus will end up in benefits exceeding tax receipts by the time the baby boomers approach to retirement and the system will have to sell the bonds in order to paid the difference.