Social Security Cap: Saving Billions, Targeting Millionaires

0:00It's March 28th. This is Durham News Today, driven by AI. Some retired couples are pulling in over $100,000 a year from Social Security way above the average of about $2,000, $71 a month per person. Budget experts at the Committee for Responsible Federal Budget once it caps those benefits at $100,000 annually for couples and $50,000 for singles claiming at full retirement age 67. They say this targets the real outliers to help keep the program afloat. These big payouts go to folks who maxed out taxable earnings $184,500 a year for at least 35 years. Now with the trust fund heading for empty by late 2032, that can mean a 24% cut for everyone hitting a typical couple with an $18,400 yearly loss. Americans are split hard, AARP calls it a slippery slope to wider cuts, insisting

1:00everyone deserves every dollar earned. But backers argue, Social Security started as a poverty shield, not a jackpot for millionaires with average retirement incomes over 2.5. Million bucks and net worth above 65 million. The cap could save between 100 billion and 190 billion dollars over 10 years, depending on inflation tweaks or freezes before. Wage indexing, it only nicked the top 0.05% of couples at first, sparing the bottom 80% fully. Lawmakers got to make fixes like this with tax hikes or age bumps to dodge that 2032 cliff. Last big reform was back in 1983 and the worker to retiree ratio keeps dropping as boomers flood in. Time to get real before cut slam regular folks.