Fact Check: Congress may raise taxes or cut benefits to save Social Security!

Fact Check: "Congress may raise taxes or cut benefits to save Social Security!"

What We Know

The claim that "Congress may raise taxes or cut benefits to save Social Security" reflects ongoing discussions in Congress regarding the future of Social Security funding. The Social Security Administration projects that the combined trust funds for Social Security will be depleted by 2035, which could lead to a reduction in benefits by approximately 23% unless Congress takes action (NPR).

Several legislative proposals have been introduced to address the funding shortfall. For instance, the Social Security 2100 Act aims to enhance benefits while ensuring the program's solvency by increasing contributions from higher earners. Specifically, it proposes applying the Federal Insurance Contributions Act (FICA) tax to earnings above $400,000, which would help fund expanded benefits without raising taxes on the majority of Americans.

Conversely, there are proposals like the Social Security Check Tax Cut Act, which suggest reducing the taxable portion of Social Security benefits, potentially alleviating tax burdens for retirees. However, these measures do not directly address the long-term solvency issues.

Analysis

The assertion that Congress may raise taxes or cut benefits is grounded in the reality of the current legislative environment. As the Social Security trust funds face depletion, Congress has a few options: they can increase revenue through tax reforms, cut benefits, or a combination of both. The Social Security Expansion Act introduced by various lawmakers aims to expand benefits while ensuring funding through higher taxes on the wealthy, indicating a legislative push towards maintaining and enhancing benefits rather than cutting them.

However, the potential for cuts remains a concern, as highlighted by the Congressional Budget Office, which warns that without intervention, benefits will be reduced significantly. This creates a scenario where Congress might have to consider cuts if they fail to enact new revenue measures.

The reliability of the sources varies. The proposals from members of Congress, such as the Social Security 2100 Act and the Social Security Expansion Act, come from credible legislative discussions and reflect the intentions of lawmakers to protect and expand Social Security. In contrast, reports about potential cuts often stem from analyses of funding shortfalls and are more speculative in nature.

Conclusion

The claim that "Congress may raise taxes or cut benefits to save Social Security" is Partially True. It accurately reflects the legislative discourse surrounding Social Security, where raising taxes is one proposed solution to ensure the program's solvency, while the possibility of benefit cuts looms if no action is taken. The current trend among some lawmakers is to seek ways to expand benefits rather than cut them, but the urgency of the funding crisis means that all options, including cuts, remain on the table.

Fact Check: Congress may raise taxes or cut benefits to save Social Security!