Democrats or Republicans: Which Party Has the Best Plan to Fix Social Security?
Ready or not, Social Security is inching closer to the biggest challenge it's faced since its inception. According to the latest Social Security Board of Trustees report, the program that currently pays benefits to more than 63 million people a month, and to which 62% of retired workers lean on for at least half of their monthly payout, is set to completely exhaust its nearly $2.9 trillion in asset reserves by 2035.
Now, there is good news -- namely, that the Social Security program isn't going bankrupt, even if it somehow burns through every last cent of its asset reserves. The program has two recurring sources of revenue -- the 12.4% payroll tax on earned income of up to $132,900 (as of 2019) and the taxation of Social Security benefits -- which ensure that it cannot go bankrupt.
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