Former Social Security Commissioner Martin O’Malley warns that without immediate congressional action, the program’s trust fund will deplete in late 2032, triggering an automatic 22% benefits cut.
In a NewsNation interview, O’Malley proposed raising or eliminating the cap on earnings subject to the 6.2% payroll tax. Currently, income above $184,500 is exempt.
“Only 6% of us experience any benefit from the cap,” O’Malley said. “Most Americans think it is unfair that wealthy people don’t pay the same tax rate as a custodian or a teacher.”
The latest Board of Trustees report confirmed the program has run a deficit for 16 years, forcing it to drain reserves. The insolvency date moved closer after tax provisions in the One Big Beautiful Bill Act.
If the trust fund empties, benefits will rely solely on incoming tax receipts. The Committee for a Responsible Federal Budget estimates the average retiree would lose about $500 monthly.
Myechia Minter-Jordan, CEO of AARP, called the report a wake-up call. “Americans have worked hard and paid into Social Security their entire lives, and they deserve to count on it when they retire.”
A May poll by The Peterson Foundation found 96% of voters want candidates to detail their plans to prevent automatic cuts, spanning across party lines and all age demographics.
Other debated solutions include raising the full retirement age beyond 67, increasing the 12.4% payroll tax, or capping maximum benefits at $100,000 for couples. Analysts note the senators elected in November 2026 will be in office when insolvency hits.