Social Security needs money to fix its shortfall. The question is, who will pay?
This is the title of a CNBC article.
Here are some of the main points:
- Social Security faces a looming funding shortfall, it’s up to lawmakers to find a way to shore up its financial outlook.
- Social Security is the nation’s largest social insurance program, making payments to approximately 75 million Americans every month.
- The program faces an imminent funding shortfall and may run out in 2032, which could prompt an across-the-board benefit cut, according to projections from the Social Security Administration and Congressional Budget Office.
- Social Security has been on the brink of funding cuts before. In 1983, when the last major reforms to the program were enacted, Social Security was just months away from not being able to pay full benefits.
- The 2026 class of senators will be the first federally elected group that must confront the program’s looming depletion dates within their six-year term.
- In the next 75 years, Social Security faces a $25 trillion shortfall — the gap between estimates for revenue coming into the program and benefits to be paid out, according to projections from the program’s trustees.
- When adjusted for inflation, that total climbs to about $674 trillion.
- Social Security payroll taxes are capped at $184,500 in wages for 2026. Once that threshold is reached, high earners no longer pay into the program for the year. Million-dollar annual wage and salary earners stopped paying into Social Security as of March
CONCLUSION
In 1960, the ratio of workers to Social Security recipients was 5 to 1. In 2026, that number has dropped to 2.5 to 1.
With people living longer, the ratio will decrease even more. It is not sustainable without large increases in the current 15.3% rate coupled with delaying Social Security payments until 67 or later.
While this article points out the problems with Social Security, it ignores the solution that would permanently solve the problem and ensure that Social Security was solvent going forward—the FAIRtax.
Instead of relying on current workers to support retired workers, the FAIRtax is funded by everyone making purchases of new retail goods and services.
THE FAIRTAX IS THE ANSWER.
The FAIRtax is a national retail sales tax on new retail goods and retail services which provides a family credit so that all purchases up to the poverty level for each family are not taxed. There is no withholding from your paycheck, and YOU NEVER HAVE TO FILE A TAX RETURN TELLING THE GOVERNMENT HOW MUCH YOU EARNED AND HOW MUCH YOU SPENT, AND YOU’LL NEVER BE HARASSED BY THE IRS EVER AGAIN.
Many of you have labored tirelessly for freedom from the federal income tax and the IRS. You deserve a great deal of credit for your efforts to educate the American people on the need to fund the American government in a way that is good for America and returns freedom to the American people.
It is imperative, though, that we don’t replace the current income tax and the IRS with an alternative system that can still be manipulated by the Ruling Elite. We must let Congress and the President know that the best way to replace the income tax and the IRS is with the FAIRtax.
Make no mistake about it. The FAIRtax is a grave threat to the Ruling Elites. It will strip them of their power and their ability to control us though the tax system. Their opposition to the FAIRtax will be fierce and unrelenting. And don’t think for an instant that they won’t use half-truths, deception and downright lies in their desperate attempt to hang on to their power.
However, with the support of this President, we can finally eliminate the income tax and the IRS!!!
Of course, the best course of action is to not only repeal the income tax and abolish the IRS but to repeal the 16th Amendment as well so no future administration can ever shackle the American people with an income tax again.
We must come together and ensure that real tax reform, the FAIRtax, is not subverted by the Elites in D.C.
This will take the diligent efforts of all of us. We need your financial assistance, and we need your grass roots assistance.
If you have contacts that will allow us to get more information to President Trump about the FAIRtax please let us know.
Please email us at info@fairtax.org and we will give you some options on how you can best help us.
At a minimum, please call your Congressional representative and ask if he or she supports the FAIRtax. If so, thank him/her for their support and suggest they become a cosponsor of HR-25 if they’re not one already. If not, ask why not. If your representative claims to be unfamiliar with the FAIRtax, offer to have someone come to their office and explain it to them.
Please go to this link to invest in AFFT and help us pass the FAIRtax. It’s an investment in your and your family’s future.
THE SOLUTION—PASS THE FAIRTAX!
Why would D.C. pass the FAIRtax and give up this almost unlimited source of donations? The only way that they will is if the rest of us demand it!
Isn’t it time to end this ludicrous tax collection system and the IRS?
HELP BRING ABOUT REAL TAX REFORM AND STOP FUTURE IRS ABUSES
By contributing (investing) $10.40 per month, you help provide a financial base to AFFT. If you can make larger contributions (investments), these will be used not for salaries, as we are all volunteers, but for the needed updates to our economic studies which will be vital for all future years.
Please go to this link to invest in AFFT and help us pass the FAIRtax. It’s an investment in your and your family’s future.