Former Social Security Chief Backs 1 of 4 Major Proposals to Save Program
Summary
A former Social Security Administration chief supports raising the tax cap on high earners to help save Social Security from running out of money by 2032. Reports warn that without changes, Social Security will face large cuts in benefits because it plans to spend more than it collects.Key Facts
- The Social Security trust fund is expected to run out of money by 2032, one year earlier than last predicted.
- Without changes, benefits could be cut automatically by 22%.
- Martin O’Malley, who led the Social Security Administration recently, suggests wealthy Americans should pay more in payroll taxes.
- Only 6 percent of Americans earn above the current Social Security tax cap and pay higher taxes.
- Social Security faces a $3.8 trillion shortfall over the next decade.
- Factors causing the shortfall include lower birth rates, less immigration, an aging population, and tax changes under President Trump’s One Big Beautiful Bill Act.
- The worker-to-beneficiary ratio has dropped from over 5-to-1 in 1960 to about 2.9-to-1 today.
- The Trump administration focuses on reducing waste and fraud as part of efforts to preserve Social Security and Medicare.
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