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Social Security’s shortfall: A meteor of our own making

Social Security’s shortfall: A meteor of our own making

Summary

The Social Security Trust Fund is expected to run out of money by 2032. This is partly because of income inequality and a limit on how much income is taxed for Social Security. To prevent this, the government could remove the income cap and tax higher earners more.

Key Facts

  • The Social Security Trust Fund may run out of funds by 2032.
  • Income inequality contributes to the fund’s shortfall.
  • There is a cap on the amount of earnings that are taxed for Social Security.
  • Higher incomes above this cap are currently not taxed for Social Security.
  • Removing the cap and taxing all income could help keep the fund solvent.
  • The issue affects the long-term ability to pay Social Security benefits.
  • Social Security is a government program that provides financial support to retirees and disabled people.
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