The People Have Come to a Consensus on How to Save Social Security — So Why Can’t Congress?
Social Security is facing a looming deficit. It will likely be insolvent within 10 years if lawmakers do not act to shore up solvency. According to an article by The Street, benefits would have to be cut by 24 percent, or revenue would have to increase by 35 percent to ensure the longevity of our Social Security program.
A new report by the National Academy of Social Insurance found that consumers support policy changes to sustain Social Security and are willing to pay for them. Popular solutions include:
- Changing the payroll tax limit. Many favor keeping the Social Security tax cap (currently $176,100) but increasing taxes on workers making more than $400,000.
- Raising the payroll tax from 6.2 percent to 7.2 percent.
- Increase cost-of-living adjustments by basing COLA on the inflation rates of the biggest expenses for seniors, like housing.
The American people agree that Social Security reform will require some combination of increasing revenue sources with rising taxes. Why can’t Congress finally make it happen?
The Seniors Trust believes the best solution is the passage of The Social Security Expansion Act. It will give retirees an immediate benefits increase of about $200 a month, a fair annual COLA, increased minimum benefits, and will ensure the long-term solvency of the Social Security program.
