Social Security’s Future: Americans Weigh In on Solutions
The financial sustainability of Social Security has been a pressing concern for years, with projections indicating that the program will only be able to pay 83% of combined benefits by 2035 if no action is taken. A recent survey of over 2,200 Americans sheds light on how citizens would address this issue.
Preserving Benefits: A Top Priority
An overwhelming 85% of respondents believe that benefits should remain the same or even increase, even if it means raising taxes for some or all Americans. This willingness to pay more is not driven by a desire for personal gain, but rather to prevent across-the-board benefit cuts.
A Combination of Solutions
The survey employed a tradeoff analysis to determine which policy changes respondents would prefer and be willing to pay for. The results showed that a combination of changes was favored by most respondents, regardless of political affiliation, income, age, or education.
Eliminating the Payroll Tax Cap
The most popular policy option was eliminating the payroll tax cap for individuals earning over $400,000. Currently, employees and employers pay taxes toward the program on up to $176,100 in earnings. This change would reapply payroll taxes starting at $400,000 in earnings, without providing additional benefits to those affected.
Raising the Payroll Tax Rate
A close second in popularity was raising the payroll tax rate from 6.2% to 7.2%. This change would apply to both employees and employers.
Other Favored Changes
Respondents also supported making benefits more generous by:
- Adjusting the annual cost-of-living adjustment to better reflect the spending habits and inflation affecting older Americans
- Providing a caregiver credit for people who stop working to care for children under age 6
- Offering a bridge benefit to workers in physically demanding jobs to soften cuts for claiming early
Closing the Funding Gap
According to Tyler Bond, research director for the National Institute on Retirement Security, these changes would close Social Security’s funding gap and result in a minor 1% surplus.
Public Support Remains Strong
A separate report analyzing Social Security polling over four decades found that public support for the program remains strong. As people approach retirement age, confidence in the availability of Social Security benefits tends to increase.
A Call to Action
The survey’s findings highlight the importance of addressing Social Security’s financial sustainability. By understanding the solutions favored by Americans, policymakers can work towards ensuring the program’s long-term viability.
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