(KIWA Staff Photo)
Statewide Iowa (RI) — Without action from Congress, Iowa Senator Chuck Grassley says Social Security recipients will face a deep reduction in benefits by late 2032.
Grassley, a Republican, is chairing a Senate Finance Subcommittee hearing Wednesday on the future of Social Security. With an aging population and declining birth rate, he says we face a quandary.
Grassley says that because of the wage cap — which is now $184,500 — the federal government stops collecting Social Security taxes on income above that amount. Vermont Senator Bernie Sanders says because of that cap, high-income earners like Elon Musk pay the same amount into Social Security as someone making $185,000 a year.
Grassley says the age at which Social Security benefits can be taken may also need to be raised. Without action, various studies project the Social Security trust fund could be exhausted by 2034 or 2035.
Grassley credits the 1983 compromise between President Ronald Reagan and Democratic House Speaker Tip O’Neill, which led to a temporary fix for Social Security that’s already lasted more than 40 years. He says new “vision” is needed to find another lasting fix.
