Urgent Action Needed to Address Social Security Concerns

WHO:

Alternet - Speaker of the House Mike Johnson warned about the need to adjust and fix entitlement programs like Social Security.

Alternet - Jack Lew, former US Treasury Secretary, stated that the government cannot wait to fix Social Security problems.

WHAT:

Alternet - The Social Security fund is projected to be depleted by late 2032, a year earlier than the previous projection of 2033.

Alternet - If no action is taken, benefits will be automatically cut six years from now.

Alternet - The Social Security payroll tax applies only to earnings up to a cap of $184,500 for the current year.

Alternet - The average Social Security benefit at the start of last year was $1,975 a month, totaling $23,700 annually.

Alternet - In 2024, 1.7 million children received Social Security benefits.

WHERE:

Alternet - The Social Security payroll tax applies to earnings in the United States.

WHEN:

Alternet - The Social Security fund is projected to be depleted by late 2032.

Alternet - The Social Security Expansion Act was introduced in several Congresses, with no specific date mentioned.

WHY:

Alternet - The shortfall in Social Security is attributed to widening inequality, as the payroll tax now hits only about 83 percent of total income in America, down from 90 percent in 1983.

Alternet - The richest 1 percent of Americans now takes in more than 20 percent of total income, compared to 11.6 percent in 1983.

HOW:

Alternet - To restore the Social Security payroll tax to hit 90 percent of total income, the ceiling on income subject to the tax would need to be raised.

Alternet - The Social Security Expansion Act proposes imposing Social Security taxes on wages above $250,000 and applying the same tax rate to capital gains and business income.

(UPDATED June 13, 2026 11:35 UTC)

Speaker of the House Mike Johnson has emphasized the urgent need to adjust entitlement programs like Social Security, echoing concerns raised by former Treasury Secretary Jack Lew, who stated that the government cannot afford to delay addressing Social Security issues. The Social Security fund is now projected to be depleted by late 2032, which is a year earlier than previously expected, and without action, benefits will face automatic cuts in six years. To tackle the shortfall, the Social Security Expansion Act suggests raising the income cap for payroll taxes and applying the same tax rate to capital gains and business income, as the current payroll tax only covers about 83 percent of total income in America.