Lawmakers debated whether to create an advisory commission as estimates pointed to a 22% to 28% automatic benefit cut in 2032 and witnesses urged action on both revenue and cost growth.
The Senate Finance Committee used a Wednesday hearing on Social Security's looming insolvency to argue over whether Congress should create an advisory commission and how much of any fix should come from higher payroll tax collections versus slower benefit growth. Senators said the program's financing gap could trigger an automatic 22% to 28% cut in 2032, or about $500 from the average monthly check. Committee ranking member Ron Wyden said higher earners should contribute more, noting the payroll tax now applies only to about the first $185,000 of wages, while Sen. Bill Cassidy and Sen. Ron Johnson warned that relying mainly on tax increases would damage savings and economic growth. Witnesses including representatives from the Committee for a Responsible Federal Budget and AARP broadly supported a commission and additional revenue measures, but Mercatus Center's Charles Blahous said solvency also requires moderating cost growth because otherwise younger workers would shoulder rising burdens. The hearing followed a Democratic push for Republicans to release a detailed Social Security plan after House Speaker Mike Johnson said the party had one.