Congress Faces 22% Social Security Cut in 2032 as Bipartisan Fix Pressure Builds
Updated
Updated · HousingWire · Sep 1
Congress Faces 22% Social Security Cut in 2032 as Bipartisan Fix Pressure Builds
2 articles · Updated · HousingWire · Sep 1
Summary
A 22% automatic benefit cut would hit Social Security in 2032 unless Congress acts, with new Wall Street Journal and CRFB reports intensifying pressure for a long-term deal.
The fight centers on whether to raise taxes, trim future benefits or mix both, while any major overhaul will likely need 60 Senate votes and bipartisan backing.
CRFB said repealing taxes on Social Security benefits would worsen finances, moving the retirement fund insolvency date to 2031 and Medicare's hospital fund deadline to 2031 from 2040.
Another CRFB analysis found a package including chained CPI, a payroll tax increase to 13.4%, a higher taxable wage cap and a $100,000 couple benefit cap could close 70% to 105% of the 75-year gap.
Lawmakers from both parties are floating ideas from lifting the payroll tax cap to creating a bipartisan commission, putting Social Security back at the center of the midterm debate.