Social Security faces a potential 20% cut in benefits by 2034 due to funding issues, and lawmakers are proposing different solutions to address the crisis, but Congressional division makes immediate change unlikely.
Social Security Uncertainty Looms as Lawmakers Seek Consensus on Future Benefits
According to the article of Wealthy Nickel, Social Security is facing a big problem that could lead to a 20% cut in benefits by 2034 unless Congress acts to fix it. Right now, Social Security gets money from taxes taken out of workers’ paychecks. This money is then given out as benefits when people retire at age 65. The program started in 1935 under President Roosevelt and has grown a lot since then. But experts say the funds will run out in the next decade, so something needs to be done soon.
Lawmakers have different ideas on how to solve this problem. Republican Senator Bill Cassidy and Democratic Representative John Larson are leading the way with their plans. Larson wants to make benefits bigger by raising taxes on paychecks and adding a tax on high earners. Cassidy wants to create a new fund with $1.5 trillion invested in the stock market, which is different from the current fund that only invests in safe places like cash and Treasury bonds. But because Congress is so divided, it’s hard to agree on any plan before the 2024 elections.
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$1.5 Trillion at Stake: Social Security’s Future Hangs in the Balance – Must Know! (PHOTO: WAMU)
Social Security Faces Uncertain Future as Lawmakers Debate Solutions Before 2024 Elections
Additionally, many Americans are worried because they rely on Social Security for their retirement. To fix this, leaders in Congress and the President need to work together and find a solution that both sides can agree on. Without action from lawmakers, the future of monthly benefits is unsure, and this uncertainty affects millions of retirees who count on Social Security.
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