The payroll tax paid by employees and employers is used to fund Social Security and Medicare, which is a government benefit individuals receive when they retire. It is estimated by 2030, 1 in 5 Americans will be over the age of 65, which will cause spending to be greater than what is being collected. Long-term projections from the Congressional Budget Office are concerned about the following: Taxes will need to be increased dramatically. Spending will need to be cut dramatically. The retirement age will need to be increased. All are possible outcomes