Rather than the government directly funding social security benefits, the US government established the ‘Social Security Trust Fund’ which is responsible for paying out social security benefits. By law, the trust fund is funded by a dedicated payroll tax of 12.4%. The trust fund is required to invest surpluses into US Treasury Bonds for the payment of future Social Security benefits. Payroll taxes currently do not cover the full cost of social security, and the trust funds are burning through their cash reserves. The trust funds are expected to be depleted by 2034, at which point payroll taxes will only cover 77% of the cost of social security.