As the Social Security insolvency nears, more lawmakers are open to tax hikes—even Republicans– fortune.com
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EXCERPT:
Congress has put off making tough choices on Social Security for years, but the bill is coming due soon, and it’s looking like taxpayers will pick up the tab.
That’s because a small but growing group of lawmakers has signaled openness to shoring up Social Security’s finances by raising more revenue via taxes. The group includes some Republicans, who have traditionally viewed tax hikes as anathema.
For decades, Social Security was viewed as the “third rail” in American politics, with any suggestion of tax hikes or benefit cuts producing swift blowback.
But as retirees face the prospect of much smaller checks, the political calculation may be changing. Projections earlier this year showed that the Social Security trust fund will run out of money sooner than previously thought, meaning benefits would face a 22% cut by 2032 unless adjustments are enacted.
Revenue from payroll taxes has been insufficient to fund current benefits, and the trust fund covers the gap. But once it runs out, Social Security will only be able to distribute what comes in.
