The looming shortfall in Social Security benefits is projected to result in a 22% to 26% cut by 2032, according to the Congressional Budget Office (CBO) and the latest 2026 Social Security Trustees’ report.
While fewer workers funding more recipients is widely blamed for the financial pressures facing Social Security, a new study says “shifting income patterns” have also weakened the program’s solvency — and offers a solution.
Rising wages among high-income earners often exceed Social Security’s taxable cap, Richard W. Johnson of the AARP Public Policy Institute noted in a new analysis. Meanwhile, corporate earnings and investment returns are flourishing.
By lifting the payroll tax cap and…