To illustrate the magnitude of the 75-year actuarial deficit, consider that for the combined OASI and DI Trust Funds to remain fully solvent throughout the 75-year projection period: (1) revenues would have to increase by an amount equivalent to an immediate and permanent payroll tax rate increase of 2.58 percentage points to 14.98 percent, (2) scheduled benefits would have to be reduced by an amount equivalent to an immediate and permanent reduction of about 16 percent applied to all current and future beneficiaries, or about 19 percent if the reductions were applied only to those who become initially eligible for benefits in 2016 or later; or (3) some combination of these approaches would have to be adopted. Source: Trustees Report June 2016
So, let’s stop the games, let’s stop pitting average Americans against well-off Americans, let’s stop lying to the American people. If Americans want Social Security to be there for them, it must be paid for. The worker and the employer today contribute a combined 12.4% of earnings up to the taxable limit. Raise that to 14.98% and Social Security is solvent for a generation. Raise the taxable wage modestly (with comparable benefit increases) and the tax can be a bit lower.
Problem solved‼️ Just one thing though. Such a strategy means the current and next generation of workers carry the burden of solving the problem while current beneficiaries get a free ride. On the other hand, given the outcry at the suggestion of even modest changes to future COLA calculations, current beneficiaries expect, nay demand a free ride. Funny how the simple solution gets messed up when everyone has their own to protect.
And then there are the politicians who haven’t the guts to tell the truth or implement changes that fix things on a sustainable basis.