Would Taxing All Earned Income Resolve Social Security's Growing Cash Shortfall?

Social Security's Funding Shortfall: A Closer Look

The existing payout schedule of Social Security, including cost-of-living adjustments (COLAs), faces a $22.4 trillion long-term cash shortfall.

Demographic Trends Affecting Social Security

• The retirement of baby boomers
• Increase in life expectancy
• Decline in net-legal migration
• Drop in U.S. birth rates
• Rising income inequality

The program's issues stem from demographic changes rather than myths like 'congressional theft'.

Solution Analysis: Taxing Earned Income

Analyzing the proposal to tax all earned income for high earners shows a 35-year extension of the program's solvency. However, this measure alone doesn't fully resolve Social Security's funding shortfall, requiring a comprehensive approach that includes adjustments in spending and revenue.