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America’s Birthrate Declines To Record Low

America’s birthrate fell to a record low in 2017. Moreover, the birthrate fell by 2% between 2016 and 2017.

In fact, America’s birthrate fell for all groups except women in their 40s, the Centers for Disease Control and Prevention (CDC) calculates. Additionally, the birthrate for some groups fell faster.

The number of babies born to women between 20 and 24 years old fell by 4% in 2017, for example. Meanwhile, the teen birthrate fell by 7% to 18.8 per 1,000 a record low.

In detail, America’s birthrate, or fertility rate, was 60.2 per 1,000, National Public Radio reports. As a result, America’s birthrate fell to its lowest level in 30 years in 2017.

America’s Birthrate Declines Sharply

“The U.S. fertility rate has declined sharply since the Great Recession,” the Center for Retirement Research at Boston College concludes.

Notably, the decline in America’s birthrate is threatening the future of Social Security, the CDC claims. To explain, the current Social Security System needs a birthrate of 1.8% to provide enough workers to fund retirement through taxes.

Consequently, if America’s birthrate falls again in 2018, it could drop below the replacement level for Social Security by 2019. Therefore, Congress could raise taxes to fund Social Security.

Uncle Sam finances Social Security with taxes on working and middle-class people’s salaries. If the number of working and middle-class people falls, the amount of Social Security taxes correspondingly drops. Under those circumstances, Congress will have to cut retirement benefits or raise taxes to fund Social Security.

America’s Birthrate Forces Maine To Help Pay Student Loans

The drop in America’s birthrate is forcing one state to take drastic action. In particular, Maine is paying off student loans to get younger people to move there.

Maine’s government is offering college graduates tax credits to help pay their student loans, CNN reports. Furthermore, Maine will cut state your state taxes by the amount of your student loan. As an illustration, if you owe $5,000 in taxes and $4,000 in loans, Maine will cut your tax bill by $4,000.

The state issued the tax credit because Maine’s population is the nation’s oldest. Maine officials hope the tax credit will lure young professionals to the state.

Officials admit that Maine’s population is below replacement because of a low birthrate. To clarify, the replacement rate is the number of babies needed to take the place of every adult in the state.

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