Income Inequality

Social Security Benefit Cuts Grow More Likely as Income Inequality Weakens Funding

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Social Security Benefit Cuts Grow More Likely as Income Inequality Weakens Funding

Social Security’s financial challenges are commonly linked to an aging population, declining birth rates and a shrinking ratio of workers to retirees. However, growing income inequality may also be placing considerable pressure on the program. An increasing share of national earnings now goes to higher-income workers whose wages exceed the Social Security payroll tax limit. … Read more

Social Security Update – Growing Inequality Could Make Major Benefit Cuts More Likely

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Social Security Update - Growing Inequality Could Make Major Benefit Cuts More Likely

Social Security’s long-term funding crisis is often blamed on America’s aging population, falling birth rates and the shrinking number of workers supporting retirees. But another factor is adding pressure to the system: income inequality. As more income flows to high earners, a larger share of wages is falling above the Social Security payroll tax cap. … Read more