Social Security’s Financial Shortfall
Many Americans rely on Social Security once they become seniors. Therefore, the understanding that the program is facing a financial shortfall has concerned many.
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If Congress doesn’t accurately find enough money to keep the program funded, then millions of Americans will end up seeing their benefits lowered or taken away.
Creating Change
Though Congress has known that changes must be made to the Social Security program, actual progress hasn’t yet occurred.
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Many believe that politics are at play for why this hasn’t happened. Others have stated that Republicans and Democrats cannot see eye to eye on this issue. However, a new poll has suggested that change could end up benefiting Social Security.
Americans Agree on Social Security Reform
A new survey conducted by the University of Maryland’s Program for Public Consultation (PPC) has revealed that the majority of Americans agree on some Social Security reforms.
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Therefore, Americans are more willing to make these changes — especially if it will help keep the program funded in the future.
The Payroll Tax
This poll found that a majority of Americans — both Republicans and Democrats — support the idea of a payroll tax on wages over $400,000.
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In six swing states, about 86% to 89% of all respondents would support this. Nationally, 87% expressed their support, which included 86% of Republicans and 89% of Democrats.
Eliminating the Shortfall
Currently, the 6.2% payroll tax is only applied to those who make wages up to $168,600.
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Therefore, if this tax is put on all wages over $400,000, then it would help to eliminate about 60% of the shortfall expected to occur in the future. This change could greatly help keep Social Security funded.
Raising the Tax Rate
Respondents also overwhelmingly agreed with seeing the payroll tax rate raised slightly by 2030, from today’s 6.2% to an eventual 6.5%.
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About 87% of Republicans agreed with this tax raise, while 87% of Democrats supported the idea.
A Huge Change
As the payroll tax is currently the primary source of income for the Social Security program, seeing these slight changes could greatly help keep the program funded for future generations.
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Modern problems, such as an aging workforce and low birth rates, have led to the program not receiving enough money through the payroll tax. These reforms could greatly make a change.
Reducing Some Benefits
This new poll has also revealed that an overwhelming majority of both Republicans and Democrats agree with reducing the Social Security benefits the top 20% of income earners receive.
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According to the survey, 93% of Democrats agree with this move, while 92% of Republicans do.
Raising the Retirement Age
Often, many people are against the idea of raising the retirement age. However, this poll sheds new light on how many average Americans feel.
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About 89% of respondents said they supported raising the retirement age from today’s 67 to 68 by 2033.
Social Security Change Can Happen
The head of the PPC, Steven Kull, has explained that this poll has further highlighted how Social Security reform can truly happen — and it’s not as politically difficult as many may have been led to believe.
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“What this tells us is that political leaders have the option of pursuing this,” Kull stated. “If they explain this to the public, the public will get on board.”
Will Reform Happen?
Though it appears that a majority of Americans, regardless of political party, agree with some levels of Social Security reform, this doesn’t necessarily mean that a divided Congress will truly pass any of these measures immediately.
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However, the popularity of these ideas may eventually help Congress realize that these changes can be successfully made.
