Social Security's retirement trust fund is projected to run out of reserves in late 2032, leaving about 78% of scheduled retirement and survivor benefits payable and implying a roughly 22% cut if Congress does not act. The looming shortfall is weakening the long-standing political resistance to tax increases, with lawmakers from both parties considering higher payroll-tax rates, a larger taxable-income cap or its elimination. Rep. Tom Cole, chairman of the House Appropriations Committee, and Rep. Lloyd K. Smucker have indicated that additional payroll-tax revenue should be part of the debate. Workers and employers currently each pay a 6.2% payroll tax on wages up to $184,500, while higher earnings are exempt. Sens. Bernie Moreno and Elizabeth Warren have proposed eliminating the cap, which the Peter G. Peterson Foundation estimates could generate about $3 trillion over a decade. Other proposals would tax investment earnings or use substantial borrowing to invest in stocks, although Boston College researchers found that market volatility could prevent the debt-funded strategy from consistently covering the shortfall. A separate CRFB model found that a 24% benefit cut would reduce retirees' payments by about $500 a month on average, with effects varying by state.