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After the Democratic Party won the majority in Congress, the financial gap of the Social Security Trust Fund, which is about to expire, came to the fore. Both inside and outside the party are discussing measures such as tax increases and removing the Social Security tax cap.
The financial website “MarketWatch” reported on the 5th,democratic party Existencemidterm elections By winning a majority in Congress, federal senators are elected to a six-year term, which is exactly the samesocial Security The six years remaining before the trust fund overlap is likely to expire, and Democrats will face the thorny question of who will fund the Social Security program.
About 69 million Americans rely on Social Security checks, and unless Congress takes action before 2034, benefits could be reduced by nearly 20%. A 2024 report from the Census Bureau’s Center for Economic Studies shows that at least 13.7% of American seniors depend on Social Security benefits for daily living, and Social Security benefits account for more than 90% of total household income.
Nancy Altman, president of the Social Security benefits advocacy group Social Security Works, issued a statement saying the Democratic Party could initiate several actions to strengthen Social Security benefits over the next two years and introduce bills aimed at increasing benefits in the vote without cutting benefits.
“The Democratic proposal would require the richest Americans to begin paying their fair share of taxes, including Elon Musk, to restore long-term fiscal balance to the Social Security program,” the statement said.
Experts believe that with the Democratic Party having control over both the House of Representatives and the Senate, they can focus more on tax increases. Although Democratic congressmen have not yet discussed the details of reforming the Social Security program, some proposals have begun to circulate, such as removing the cap on Social Security tax payments.
According to the current regulations, in 2026, only annual income of less than 184,500 yuan is required to pay social security tax, and income exceeding this standard is not required to pay social security tax. The Social Security tax rate for both employers and employees is 6.2%.
The proposal to lift the cap on Social Security tax payments has bipartisan support. Democratic Massachusetts U.S. Senator Elizabeth Warren and Republican Ohio U.S. Senator Bernie Moreno jointly introduced a proposal this summer to raise the Social Security tax payment threshold so that higher-income groups can pay more taxes for the Social Security benefits program.
Analysis by Jonathan Schwabish, a senior tax researcher at the nonprofit Urban Institute, and Zane Snyder Cox, an analyst, found that although 18 U.S. Senate candidates did not comment on the proposal during the midterm elections, only one of them actually opposed raising or eliminating the Social Security tax payment cap, and 20 U.S. Senate candidates expressed support for the proposal during the election.
Republican Ohio U.S. Senator Jon Husted, who had publicly opposed removing the Social Security tax cap, lost the election to Democratic challenger Sherrod Brown.
Romina Boccia, director of budget and welfare policy at the Cato Institute, a libertarian think tank, said the Social Security program reform proposal needs 60 votes in the Senate to pass. Some senators may use delay tactics, and Democrats are also motivated to stay on the sidelines for a while because they will have a chance to win the White House in the next two years.
Summary FAQ
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The biggest problem is that the Social Security trust fund could run out in the next six years. If Congress does not act before 2034, benefits could be reduced by about 20%. Therefore, it must be decided who will take the responsibility of replenishing the financial resources.
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Altman, president of Social Security Works, advocates that the wealthiest Americans should pay taxes fairly; There are also plans to lift the cap on Social Security tax payments, which would allow higher earners to afford more and improve the long-term balance sheet.
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Because under the current system, people with annual income over $184,500 in 2026 don’t have to pay Social Security taxes, and raising the cap could expand the tax base; The case has cross-party support, but it still needs 60 votes for passage in the Senate.
