Every few months, another headline tells Americans that Social Security is going broke.
asserted
Security → tell → Americans
Social Security isn't going to wake up one morning with zero dollars coming through the door.
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dollars → go → door
Even if its trust fund reserves are depleted, millions of workers will still be paying Social Security taxes every payday.
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millions → deplete → taxes
The problem is that those taxes eventually won't generate enough money to pay 100% of scheduled benefits.
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taxes → generate → benefits
So, let's stop pretending Social Security can't be fixed.
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Security → let → ?
You're just probably not going to like the fix.
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You → go → fix
Here are three changes Washington should seriously consider.
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Washington → consider → ?
1. Raise the Social Security wage cap to $400,000
In 2026, employees pay 6.2% into Social Security, and employers contribute another 6.2%, but the tax stops once wages reach $184,500.
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wages → raise → 184,500
Someone making $100,000 pays Social Security tax on every dollar.
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Someone → make → dollar
Someone making $1 million doesn't.
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Someone → make → million
That's going to become increasingly difficult politically and mathematically to defend.
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That → go → ?
For somebody earning $400,000, that would expose another $215,500 of wages to Social Security taxes.
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that → earn → taxes
It also doesn’t make Social Security an infinite tax like Medicare.
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Security → make → Medicare
At today's 12.4% combined employee-employer rate, that's potentially another $26,722 annually flowing into the system from that worker and employer combined.
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that → combine → worker
Depending on exactly how Congress structured the change, we're potentially talking about well over $1 trillion of additional revenue over a decade.
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we → depend → decade
Higher earners won't like it.
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earners → like → it
I wouldn't like paying it either.
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I → like → it
But Social Security needs revenue.
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Security → need → revenue
It’s called a compromise.
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It → call → ?
Take the 6.2% tax to 7.2%, one-tenth at a time
Here's the second part politicians really won't want to advertise.
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politicians → take → time
Everyone needs some skin in the game.
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Everyone → need → game
Employers would see a corresponding gradual increase.
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Employers → see → increase
For someone earning $75,000, the first increase amounts to about $75 for the entire year.
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increase → earn → year
Ten years later, the employee would be paying an additional $750 annually at today's income.
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employee → pay → income
Higher earners won't like it.
asserted
earners → like → it
I wouldn't like paying it either.
asserted
I → like → it
But Social Security needs revenue.
asserted
Security → need → revenue
It’s called a compromise.
asserted
It → call → ?
Nobody enjoys paying more taxes.
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Nobody → enjoy → taxes
But slowly adjusting the rate over a decade gives workers and businesses time to adapt.
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adjusting → adjust → time
If you were born after 1990, 70 becomes the new 67
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70 → bear → 1990
Now comes the third rail.
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rail → come → ?
Today's full retirement age is 67 for people born in 1960 or later.
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age → bear → 1960
Don't change the deal for someone who's 62 and has spent their entire working life planning around 67.
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who → change → 67
If you were born after 1990, gradually move full retirement age to 70.
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you → bear → 70
Someone born in 1991 turns 35 this year.
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Someone → bear → 1991
They have decades to plan for the change.
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They → have → change
People are living longer than generations before them.
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People → live → them
If we're going to make Social Security financially sustainable for another generation, the retirement-age math eventually has to reflect longevity.
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math → go → longevity
In the end, nobody gets a free lunch
Here's the political problem.
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problem → get → lunch
…and 17 more, not listed.
The Aporia
