Even with taxes on high-income earners, Biden’s offer would mitigate the necessary cuts in benefits if not changed further, but Urban Institute analysis suggests that only an additional five years of solvency will purchase the program.
But Biden’s policy advisors said the proposal was an opening bid. “The Vice President’s financing proposal shows how he protects and increases benefits for all social security beneficiaries while paying a down payment for long-term solvency,” said Gene Sperling, Biden’s external advisor and former presidential national economic advisor. . Bill Clinton and Barack Obama.
Almost all Americans are at risk or have someone close to them. Approximately 184 million workers are contributing to the program, and about 45.8 million retirees this year will benefit from nearly $70 billion. The average monthly check is about $1,500 per person. According to the Social Security Administration
Under current law, severance pay can only be obtained from trust funds that will be exhausted by 2034. Social security estimates It is not to consider the epidemic. At this point, you can only pay 76% of your benefits with taxes collected. (ㅏ Congressional Budget Office The September report predicts that the trust fund will run out in 2031. Including other Nonpartisan Policy Center, The project could be faster.)
“The price of unaction is serious,” Akabas said, as the nearer bankruptcy the necessary changes will become more and more painful, so tax increases should be greater and cuts will be more severe.
He said, “The longer you wait to fix the problem, the less people will be able to play a role in the solution.”
According to a 2017 study published in, about half of the people over 65 live in households that receive more than half of their Social Security income. Social security bulletin board. About 25% of elderly households rely on social security for more than 90% of their income.