In a July 12 hearing, the U.S. Senate Budget Committee addressed future threats to the Social Security (SS) Trust Fund. If nothing changes, by 2035, benefits may have to be reduced. One option is to raise the full retirement age, based on gains in life expectancy that allow people more years to draw benefits. But opponents say this would disproportionately affect low-income individuals. Another option is to raise the yearly cap on which workers pay SS tax. In 2023, the cap is $160,200. Some propose to have higher-income taxpayers pay SS on income above $400,000, a move which opponents say will mean lower take-home pay for workers. Discussions in Congress are continuing.
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