Social Security faces looming benefit cuts. Can the program be saved?
Summary
Social Security's trust fund is expected to run out of money in six years, which would cause automatic cuts in retirement and disability payments. Experts say the program can be saved if lawmakers make tough decisions, such as raising taxes or reducing benefits.Key Facts
- Social Security’s trust fund may be empty by 2030, leading to benefit cuts.
- Over 70 million Americans rely on Social Security for income.
- Benefit payments could be cut by about $500 monthly if no action is taken.
- The funding gap is caused by an aging population, less immigration, and tax changes.
- One option is to remove the cap on income taxed for Social Security, which could close 22% to 67% of the gap.
- Another idea is to raise the payroll tax from 12.4% total to about 17% total to cover costs.
- These changes require decisions about who will pay more or receive less.
- Experts stress that the problem is solvable but requires political willingness.
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