Social Security trust fund depletion projected by 2032; lawmakers propose taxing high earners' full wages
By
Lorie Konish
Summary
Social Security's Old-Age and Survivors Insurance (OASI) trust fund is projected to be depleted by the fourth quarter of 2032, sooner than previously estimated, at which point only 78% of benefits would be payable. In response, some Washington lawmakers are proposing to address the funding shortfall by requiring high earners to pay Social Security payroll taxes on all of their income, rather than only on earnings up to the current cap. The article examines the policy debate around removing or raising the payroll tax cap as a potential solution to extend the program's solvency.
Source
bskySocial Security trust fund depletion projected by 2032; lawmakers propose taxing high earners' full wagescnbc.comKey quotes
· 3 pulledIn the fourth quarter of 2032, that trust fund — called Old-Age and Survivors Insurance, or OASI — may be depleted, when 78% of benefits will be payable, according to Social Security trustees' latest projections.
High earners may only contribute Social Security payroll taxes for part of the year. As the program faces funding woes, some lawmakers say that should change.
The new projection is several months sooner than had previously been estimated for that fund, which Social Security relies on to pay monthly benefits to million of retired workers, their spouses and children, and sur
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