Is Social Security Really Going Bankrupt? Let’s Separate Fact From Fiction
With tens of millions of seniors relying on Social Security for their retirement income, it’s no wonder there is such concern over reports that the program is on the verge of bankruptcy. A report by The Motley Fool says that is just a myth, however, Social Security is facing financial challenges.
It reasons that because Social Security’s main funding source is payroll tax revenue, it can’t go bankrupt. As long as there is an active labor force, the program will always have money coming in.
But it might not be enough to keep up with demand. That’s exactly what we are facing as record numbers of Baby Boomers retire and there is a smaller number of people entering the workforce.
This will eventually result in a trust fund shortfall. When that happens, Social Security will have no choice but to cut benefits. It’s estimated that beneficiaries could see their checks slashed by almost 20 percent in about 10 years.
Solvency Plan
The Seniors Trust believes the best way to save Social Security is the Social Security Expansion Act. This landmark bill buttresses the long-term solvency of Social Security by expanding benefits for seniors — not cutting them!
When passed, this legislation will require the wealthiest Americans to pay their fair share. This legislation would lift the income tax cap and subject all income above $250,000 to additional Social Security payroll tax. Under this bill, more than 93 percent of households would not see their taxes go up by one penny.
It would also expand Social Security benefits by $200 per month across-the-board. Retirees would not need to hold off until full retirement age to achieve bigger benefits.
If you agree that this is a viable means of solving Social Security’s solvency issues, please show your support by signing our petition to Congress and join us as we work to improve the lives of senior citizens.
