Most politicians fear touching the ’third rail' of American politics, but Rep. John Larson (D-Conn.) and Sen. Bill Cassidy (R-La.) are taking on the challenge.
The Social Security Fairness Act (SSFA) has been co-sponsored by 329 members of Congress in 2024, but it does not address the fundamental insolvency issue. The SSFA would end two provisions of current law that reduce benefits for millions of public employees at all levels of government with separate pension systems. Eliminating these provisions would increase the total amount of Social Security benefits paid out without providing new revenues to fund them. Despite this, the bipartisan proposal is likely to pass Congress and President Joe Biden is expected to sign it into law when lawmakers reconvene after the election.
Social Security has been the untouchable "third rail" of American politics for decades, with approximately 70 million Americans being beneficiaries. The Social Security Trustees' latest report projects that the system will become insolvent in 2035 unless Congress approves major reforms soon. The ratio of workers paying into the system to beneficiaries is heading downward, and retirees are living longer today, drawing more benefits over time.
The seemingly impossible challenge for Congress and the White House is how to reform Social Security if increased taxes and reduced benefits are untouchable. The last president to propose a major reform was George W. Bush, who suggested privatizing the system. Two lawmakers have ventured beyond the raise-taxes-reduce-benefits dilemma to explore other ways of saving Social Security before it becomes insolvent. Rep. John Larson (D-Conn.) has introduced his Social Security 2100 Act, which would apply Social Security taxes to all taxpayers making more than $400,000 annually.
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