Survey Finds Most Americans Support Tax Increases to Protect Social Security!

Race Day Live Social Security could face a major funding gap in the next decade if no action is taken. By 2035, the program will only be able to pay 83% of scheduled benefits unless Congress makes changes.

A new survey asked Americans how they would prefer to fix the issue, and most people support tax increases rather than benefit cuts.

Why Social Security Faces a Financial Problem?

Social Security is a key source of income for millions of retired Americans, but its financial reserves are running low.

The latest projections show that by 2035, the program will only be able to cover 83% of benefits.

A new law, the Social Security Fairness Act, could even move that deadline up by six months by increasing benefits for certain public workers.

To understand how Americans feel about this issue, researchers surveyed over 2,200 people who expect Social Security to be an important part of their retirement income. The results show that most people are willing to pay more in taxes to avoid benefit cuts.

Americans Prefer Raising Taxes Over Cutting Benefits

The survey, conducted by the National Academy of Social Insurance, AARP, the National Institute on Retirement Security, and the U.S. Chamber of Commerce, found that 85% of respondents would prefer Social Security benefits to stay the same or even increase.

To achieve this, they would support tax increases for some or all Americans.

Only 15% of respondents said they would rather avoid tax hikes, even if that means benefits would be reduced.

The survey highlights that Americans see Social Security as an essential program and want to ensure it remains financially stable.

The Most Popular Ways to Fix Social Security

The survey allowed participants to choose from different policy options to fix Social Security’s funding gap. Here are the most popular solutions:

1. Removing the Payroll Tax Cap

Right now, Social Security payroll taxes only apply to earnings up to $176,100 (for 2025). Once someone earns more than that, they stop contributing for the rest of the year.

Most survey respondents support removing this cap for people earning over $400,000, meaning high earners would continue paying into Social Security throughout the year. However, this change would not increase their future benefits.

2. Raising Payroll Tax Rates

Currently, employees and employers each pay 6.2% in Social Security taxes. One suggested change would increase this rate to 7.2%, providing more funding for the program. This small increase could help stabilize Social Security for future generations.

Other Suggested Changes

Beyond raising taxes, the survey also found support for making Social Security benefits more generous. These changes aim to help specific groups of people who may need extra financial support:

Adjusting Cost-of-Living Increases: Updating how Social Security calculates inflation to better match the rising costs older Americans face.
Caregiver Credits: Giving benefits to people who take time off work to care for young children.
Bridge Benefits for Physically Demanding Jobs: Helping workers in labor-intensive jobs retire earlier with less financial penalty.

The Least Popular Change: Reducing Benefits for High Earners

One proposal that did not receive much support was cutting benefits for retirees with higher incomes.

Under this idea, individuals earning over $60,000 annually (excluding Social Security) and married couples earning over $120,000 would receive reduced benefits.

Most respondents opposed this idea, indicating that they believe Social Security should be a universal benefit regardless of other income sources.

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Would These Changes Solve the Problem?

According to Tyler Bond, research director for the National Institute on Retirement Security, the proposed changes would not only close Social Security’s funding gap but also create a small 1% surplus.

This means that, if implemented, Social Security could be financially stable for many years to come.

Interestingly, some commonly suggested changes—like raising the retirement age, increasing benefits across the board, and changing how Social Security benefits are taxed—were not preferred by survey respondents.

Americans Strongly Support Social Security

This survey aligns with long-term research showing that Americans have consistently supported Social Security.

Over the past 40 years, polls have found that the public values the program and wants to ensure it remains funded.

According to Bond, many people believe Social Security is an essential program that should be protected.

While some younger Americans worry that the program won’t be around when they retire, confidence tends to grow as people get closer to retirement age.

What’s Next for Social Security?

With strong public support for changes like raising payroll taxes and eliminating the earnings cap, lawmakers may feel increased pressure to take action. If Congress does not act soon, benefit cuts may be unavoidable in the future.

For now, the debate continues, but one thing is clear: Americans want Social Security to stay strong, and they’re willing to pay more to make sure it does.

Reference

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