If lawmakers don’t act, Social Security’s trust fund will be tapped out in about 18 years. To make all of Social Security solvent for the next 75 years would require the equivalent of any of the following: immediately raising the Social Security payroll tax rate to 14.98% from 12.4% on the first $118,500 of wages; cutting benefits by 16%; or some combination of the two.
I have long demanded action by Congress and the President to ensure the long-term solvency of Social Security; a promise everyone seems to want to keep but no one wants to fund. The challenge is exponentially harder because despite warnings from experts for years, there has been no action which is only compounding the greater problem. And despite what Senator Bernie Sanders says, taxing the wealthy more to “pay their fair share” will not ensure the long-term solvency of Social Security.