Social Security Changes
If Congress had never changed Social Security's original income stream in the Social Security Act of 1935, when would Social Security be insolvent?
Correct Answer
If Congress had never changed Social Security's original income stream in the 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 adding other taxes to its income stream. This has placed progressively higher Social Security tax burdens on successive generations of workers. Thus, the maximum Social Security payroll tax is now 8.6 times what the politicians who enacted Social Security promised would be "the most you will ever pay." The Social Security Administration's current best estimate is that the program will become insolvent in 2034, or 10 years from now. To keep the program solvent in 2034 would require raising payroll taxes by another 25% or reducing benefits by 19%.
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