By self destructing society? Did you even read the analysis or is that too much strain for your brain? I’d rather not follow the economic advice of a low IQ Bama who couldn’t balance a target gift card
Myth No. 1: Social Security is going broke
Reality: Social Security is facing an ongoing shortfall and needs shoring up, but it’s not going bankrupt.
Social Security is complicated for many reasons, not the least of which is the way it’s funded. Most of
Social Security’s income comes from a dedicated 12.4%
payroll tax that’s evenly split by employees and employers, with the workers’ part deducted from each paycheck. If you’re
self-employed, you pay the full amount, less a
deduction for paying
self-employment tax.
Revenue also comes from
investment income and
taxes paid by retirees (and others) on their benefits.
That revenue flows into the two main Social Security trust funds:
Surplus vs. shortfall
Since the 1980s, the money coming in had been more than enough to cover Social Security’s expenses. That changed in 2021, when a long-predicted event occurred: The tide turned, and Social Security expenses exceeded income by about $41 billion. To close the gap, the trustees began tapping the pool of reserve funds (which is finite).
Myth No. 3: With no obvious solutions, Social Security could be eliminated or privatized
Reality: Not likely. Policymakers have been debating a range of interventions, and many people are confident that
Congresswill act in time.
Social Security isn’t popular with everyone, but the program enjoys strong
bipartisan support from enough voters and lawmakers that it’s unlikely to fail soon, if ever. And although it may seem that nothing much is happening to avert the Social Security crisis, policymakers are developing and debating a range of potential solutions, including:
- Raising the full retirement age (currently 67 for those born in 1960 or later) to 68 or 69. Boosting the age would lessen the demand on the system, but it might strain some workers, such as manual laborers, who could find it difficult to work longer.
- Increasing the Social Security payroll tax, which could bring in revenue to cover the shortfall.
- Eliminating the maximum taxable wage cap, allowing a wider swath of wages to be taxed, which could also shore up the program. Wages now are taxed up to only the first $168,600 earned.
Although Americans notoriously
resist tax increases, in this case, the majority say they’d rather secure Social Security’s future with higher taxes than by reducing benefits, according to a Gallup poll.
The more pressing question is:
When will lawmakers and advocates arrive at an intervention that makes sense and take action?
The bottom line
Despite the rumors that Social Security could be on its last legs, the nearly 90-year-old program is not going anywhere, according to the trustees who oversee it.
That said, Social Security has been running a shortfall since 2021. The gap between income and expenses is being covered by withdrawals from a pool of surplus funds—but that pool is finite, and without intervention, it will be depleted by 2034. At that point, if nothing is done,
retirees can expect to get about three-quarters of their anticipated benefit amounts.
But that’s not likely to happen. Policymakers are working on feasible solutions, one (or a combination) of which would ensure full benefits for everyone, even if the surplus does run out. It’s just a matter of when.
Social Security faces a gap between income and expenses. If Congress doesn’t find a remedy for the shortfall, Social Security benefits could be reduced by about 25%.
www.britannica.com
Why isn’t it sustainable? Explain what will happen.
Come on c00n buffoon. Explain what purchasing power is. Explain what debt is. Explain what happens if the “fed” prints money?
Don’t just fear monger because you heard some cac tell you these things. Explain in detail what these terms mean.
God willing
