Social Security promise – broken, or not? - Motley Fool
During the recent election cycle, all candidates promised that Social Security “would not be touched.” That included President Trump, who committed that he would not “touch” Social Security. But with the recent events associated with the Department of Government Efficiency (DOGE) efforts, including staffing changes and pursuit of wasteful programs, has President Trump broken his promise? Well, if you consider making Social Security more efficient and less wasteful of the money which sustains the program as a broken promise, then technically perhaps. But, President Trump has also been very clear that he will not support any changes to Social Security’s benefit structure and that no one currently collecting, or eligible for, Social Security benefits will see their benefits cut. That, also technically, means that President Trump has been true to his promise not to cut Social Security benefits.
The bigger question, perhaps, lies in understanding that the program will see automatic cuts to everyone’s benefit in about 2033, unless Congress enacts program reform soon. The Social Security Trust Funds are projected to be depleted by about 2033, which means that Social Security can only pay out what it brings in for revenue. And revenue these days is insufficient to pay 100% of benefits. Thus, Congress (and the President) must act soon to reform the program to fiscal solvency. All of this is detailed in this Motley Fool article by Sean Williams.
As an example of the leading thoughts on reforming Social Security, the Association of Mature American Citizens (AMAC, Inc.) believes Social Security must be preserved and modernized to meet the demands of 21st-century economics. AMAC’s position is that this can be achieved without payroll tax increases via slight program modifications, including cost of living adjustments and payments to high-income beneficiaries. AMAC also supports an increase in the thresholds where benefits are subject to income tax, along with indexing of these thresholds annually to account for inflation. The AMAC position also calls for eliminating the reduction in benefits for those choosing to work before full retirement age, and advocates for improved savings tools for future retirees. AMAC is resolute in its mission that Social Security be preserved for current and successive generations and has gotten the attention of lawmakers in D.C., meeting with many congressional offices and staff over the past decade.