Former Georgia Republican Representative Marjorie Taylor Greene expressed concerns on Thursday regarding the future of the Social Security Trust Fund.
“Social Security will be bankrupt by 2033. I’ve been trying to tell everyone. It’s less than seven years away,” Greene stated on X. “Instead of funding foreign wars and foreign countries, we must save Social Security! If senior citizens cannot receive their SS checks, the government should be burned to the ground.”
Why Is It Important
Social Security is a vital source of income for millions of Americans, with benefits distributed to over 70 million individuals monthly by the Social Security Administration (SSA).
Earlier this year, Greene decided to step away from her role after a fallout with President Donald Trump, largely over his views on foreign policy and healthcare, as well as the release of documents linked to the late Jeffrey Epstein.
What You Need to Know
Greene’s remarks come in light of a recent report from the Congressional Budget Office (CBO), which estimates that the Social Security Retirement Trust Fund will deplete its resources by fiscal year 2032— a year sooner than earlier predictions. The 2025 Social Security Administration Commission report suggests that the fund will run out by 2033.
If that occurs, the program won’t be able to distribute full benefits, limiting payments to current revenue collection primarily from payroll taxes.
The CBO has projected a potential immediate reduction of about 7% in benefits for all recipients in 2032. From 2033 to 2036, this reduction could increase significantly, averaging around 28% annually.
This isn’t the first alert concerning the solvency of the trust fund.
Last year, the Committee for a Responsible Federal Budget stated that “policymakers are running out of time to enact the changes needed to prevent trust fund collapse.” They emphasized that delay limits options and complicates the implementation of gradual changes to taxes and benefits, which could give workers and retirees time to adjust.
From both political parties, various proposals have been introduced to tackle expected Social Security deficits. For example, the Fair Share Act, introduced by Senator Sheldon Whitehouse and Representative Brendan Boyle, seeks to impose payroll taxes on income exceeding $400,000. Proponents argue this could extend the fund’s solvency for another 75 years.
Additionally, Senators Bill Cassidy and Tim Kaine have suggested creating a new fund that would enable Social Security to invest in stocks and other assets, beginning with an initial $1.5 trillion in treasury aid.
How Do Social Security Funds Work?
The Social Security program mainly relies on a dedicated payroll tax mandated by the Federal Insurance Contributions Act (FICA).
Both workers and employers contribute 6.2% of wages, totaling 12.4% up to an annual taxable limit. Self-employed individuals cover the full 12.4% themselves. It’s worth noting that some beneficiaries also pay federal income taxes on part of their benefits, which/that income flows back into the plan.
The revenue gathered is placed into two trust funds overseen by the Social Security Administration: the Old Age Survivors Insurance (OASI) Trust Fund and the Disability Insurance (DI) Trust Fund.
Wider Impact
The CBO also warned that such cuts would likely have broader economic repercussions. Reduced benefit payments may lead to decreased consumer spending, slower economic growth, rising unemployment, and eased inflation. The agency anticipates the Federal Reserve might respond by lowering interest rates to stimulate the economy.
In turn, reduced borrowing costs might help mitigate some lowered spending, while benefit cuts could lead certain Americans to save more and remain in the workforce for longer. Overall, the CBO estimates that real GDP could be about 0.7% lower than earlier forecasts in 2033, the year following the trust fund’s depletion, but output in subsequent years may surpass previous predictions.
