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Social Security: The Only Way to Save It from Total Collapse

Rachel Greszler

Rachel Greszler

Society,

Could this work? 

Social Security: The Only Way to Save It from Total Collapse

The truth is unavoidable: Social Security is insolvent. It’s set to run out of money to pay scheduled benefits in about 15 years, barring action from Congress.

Policymakers have only a handful of options to avoid a roughly 25% cut in benefits for everyone. They can raise taxes, cut benefits, or enact a combination of both—and the sooner Congress acts, the smaller the required tax increases or benefit cuts will be.

What’s not clear to many Americans is whether they would be better off with a smaller or larger Social Security system altogether. Would they be better off paying more in taxes and receiving more from Social Security, or keeping more of their money in the first place?

In a new report, my colleague and I at The Heritage Foundation examine that question. We find that Americans of all income levels would be better off paying less in Social Security taxes and receiving more targeted benefits in line with need.

Alas, that’s not what Congress wants to do.

Within the next month or so, the House of Representatives will likely pass the Social Security 2100 Act, which would make Social Security solvent by imposing super-sized tax increases.

The bill goes further than just raising taxes enough to avoid benefit cuts. It would raise taxes enough to increase benefits immediately for all current and future Social Security recipients.

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