Just Facts Daily

If Congress had never changed the original Social Security Act of 1935, the program would have become insolvent before 1980. Contrary to the common belief that politicians have looted Social Security, they have actually extended its life by repeatedly raising its payroll tax rate, increasing its inflation-adjusted taxable maximum, and making other changes to the program. This has placed progressively higher Social Security tax burdens on successive generations of American workers. The Social Security Administration's current best estimate is that the program will become insolvent 12 years from now. Thus, the correct answer is 1980 minus 2035, or negative 55 years. To keep the program solvent in 2035 would require raising payroll taxes by another 25% or reducing benefits by 19%.