'Securing' Social Security
Social Security is one of the most important programs in America. We cannot let it go unfunded, and we cannot sacrifice the well-being of our seniors to make it solvent. At a time when economic prosperity is so great (at least for some), reforming the tax system is the obvious and easy solution.
Recently, Social Security made the news in what has become an annual tradition. A yearly report about the long-term financing of the program was released and many people made a lot of noise about the program running out of money. Such concern is understandable, as millions of senior citizens rely on Social Security to live in retirement. Without this vital program, millions of people would be left in poverty. Financially securing Social Security is extremely necessary for the well-being of our country.
According to the report, the Old-Age and Survivors Insurance Trust Fund, which pays benefits to seniors (what we usually think of as “Social Security”) and survivors of deceased workers will be exhausted by 2033. Starting in 2034, the Social Security Administration will only have new tax revenue to fund benefits; roughly 78 percent of benefits could be paid out with current Social Security taxes. The exhaustion is one year earlier than projected because the pandemic recession lowered tax revenue. The Disability Trust Fund (for disability benefits) will be exhausted by 2057 and have enough revenue to pay 91 percent of benefits starting in 2058.