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AUTHOR: R Quinn on 4/15/2026
According to the 2025 Trustee Report, the actuarial deficit for the combined Social Security trust funds under the intermediate assumptions is 3.82 percent of taxable payroll for the 75-year period 2025-99.
We could discuss endlessly how and why we got to this point, but I hope we can agree there is no excuse having had thirty plus years to deal with a coming crisis.
I have a suggestion to get on the right track- take a concept from private pensions. Employers must contribute enough to meet future obligations (target normal cost + amortization of underfunding). Plans must aim toward 100% funding over time However, below 80% funded, benefit restrictions may apply (e.g., limited lump sums, no benefit improvements).
We need to bite the bullet and tell Americans the truth about Social Security funding and set the tax rate as the actuaries note at 16.22% worker-employer combined. But the real significant changes comes after.
Once we have the needed tax level, we set the rate on automatic by law. That is, each year the rate is adjusted (or not), up or down using actuarial calculations to assure funding remains adequate for the 75-year projection period (essentially a generation.) No law change, no political involvement required. Any legislated benefit changes would immediately be reflected in the tax rate.
Frankly, I view these taxes almost as insurance premiums providing a retirement annuity, spousal income, disability benefits, survivor benefits and protection for children.
Once and done. Assure Social Security is always self funding. Too simple right? The problem is getting Americans to accept the facts instead of the latest meme😢
QUINNSCOMMENTARY 