As Social Security edges closer to a funding shortfall, Americans are split over how to address the issue. A possible shortfall could lead to automatic benefit cuts within a decade. This division was highlighted in a survey by the Ronald Reagan Presidential Foundation and Institute, which found little agreement on solutions such as raising taxes, cutting benefits, or increasing the retirement age.
The Importance of Social Security
Often called the “third rail” in American politics, Social Security is vital for many retirees. It provides monthly payments primarily funded by payroll taxes from workers and employers. Historically, the program has collected more money than it disbursed, building trust fund reserves. However, changing demographics have increased the program’s strain. An aging population, lower birth rates, and more retirees have led to more benefits being paid than tax revenue collected.
Projected Shortfall
The retirement trust fund is expected to deplete around 2032 to 2033 without congressional intervention. This scenario would not eliminate Social Security, as payroll taxes would continue, covering about 75 to 80 percent of scheduled benefits. Without a solution, this would mean potential automatic cuts of approximately 20 to 25 percent.
Resistance to Major Proposals
The Reagan Institute survey, conducted with 1,244 registered voters, found weak support for common proposals to address the shortfall. Of the options—reducing benefits, increasing taxes, raising the retirement age, or adding to national debt—raising the retirement age had the most backing at 26 percent.
Many respondents selected “other” options when asked how to resolve the funding gap.
About 40 percent of these responses proposed higher taxes on wealthy individuals or corporations, or lifting the cap on wages subject to Social Security taxes. Some responses suggested the shortfall resulted from government mismanagement or theft, a misunderstanding of the pay-as-you-go system. Others called for cuts to national security or defense spending to fund Social Security.
Means Testing vs. Broad Reductions
The survey indicates a preference among Americans for targeted sacrifices from wealthier groups. A proposal to reduce benefits for affluent retirees gained significantly more support. When choosing between paying more taxes, reducing benefits, or cutting benefits for higher-net-worth retirees, 71 percent favored the last option.
Support for reducing benefits for wealthier retirees spanned across political affiliations, with 75 percent of Democrats, 72 percent of independents, and 66 percent of Republicans backing the idea. Among households earning over $200,000 annually, 60 percent preferred it compared to broader tax hikes or cuts.
Overall, there is consensus that means testing is more favorable than broad tax increases. When voters had to choose, most preferred raising taxes over benefit reductions at a two-to-one margin. Younger voters between 18 and 29 were more open to benefit reductions, while those 45 and older preferred tax hikes.
Recent Poll Findings
The Reagan Institute’s findings align with other polls showcasing public resistance to contentious solutions, wanting the program preserved but divided on financial burden distribution. A December 2025 poll by the Cato Institute and YouGov found 77 percent of Americans opposed cutting benefits for current or future retirees and raising payroll taxes. An identical share opposed increasing the retirement age to 70. When forced to choose, 35 percent preferred tax hikes, 14 percent benefit cuts, and 17 percent borrowing more, leaving about one-third unsure.
Gallup polls also showed stronger backing for tax increases than for benefit reductions, with 61 percent of respondents favoring tax raises over cuts in a 2023 survey.
Legislative Proposals
Various legislative proposals aim to extend Social Security’s solvency. A Democratic-backed plan, the Social Security Expansion Act, introduced by Senator Bernie Sanders and Representative Val Hoyle, proposes higher benefits and taxing income above $250,000. It also suggests a higher minimum benefit for low-income earners and an inflation measure focused on seniors for cost-of-living adjustments.
The Fair Share Act, backed by Senator Sheldon Whitehouse and Representative Brendan Boyle, targets taxpayers earning over $400,000, requiring them to pay Social Security taxes on all types of income.
This bill would safeguard Social Security and Medicare by ensuring wealthier Americans contribute fairly, Whitehouse and Boyle stated in May 2025.
A bipartisan proposal from Senators Bill Cassidy and Tim Kaine suggests a separate investment fund to generate returns through stocks, bonds, and other assets. The government would inject $1.5 trillion initially, allowing growth over decades before supplementing payroll tax revenue.
Raising the retirement age is another option. Currently, the full retirement age for Americans born in 1960 or later is 67. The Republican Study Committee proposes gradually increasing it to 69 for younger workers.
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