Media Jump On Idea That Social Security Is Going Bankrupt, Ignore Easy Way To Ensure Its Future

Social Security is going broke even faster than expected, according to a report from the program’s actuaries released yesterday. At least, that’s the narrative the national media presented to the American public.

The headlines and stories that follow create the illusion that Social Security is fast going broke, even though it is fully funded for another two decades and could pay 75 percent of its benefits thereafter (imagine the shock the media would display, meanwhile, if transportation, food stamps, or other programs had two decades of guaranteed funding).

They also ignore an easy way to ensure the program’s long-term solvency without large changes or cuts to benefits. Payroll taxes that finance Social Security are only collected on income up to a certain level ($110,100 in 2012), creating a regressive system that puts an undue burden on low- and middle-income workers. 

Eliminating that cap would allow Social Security to pay full benefits for the next 75 years, according to a Congressional Research Service report.