Despite positive economic indicators that have extended the estimated depletion date for Social Security's trust fund to 2035, experts warn that the looming shortfall has not been addressed by Congress. The projected depletion of Medicare's Hospital Insurance trust fund has been pushed to 2036, but both programs face challenges that require prompt action. Possible solutions include tax increases, benefit adjustments, or a combination of both.
Starting March 2, 2024, millionaires will cease contributing to Social Security, leaving a funding gap. This may lead to benefit cuts by 2034. Democrats propose raising payroll taxes on the wealthy to address this, while some wealthy individuals advocate for taxing investment income like earned income. These proposals aim to maintain Social Security's financial stability and potentially increase benefits.
