Increasing the payroll tax rate
It will probably be necessary to increase the fees for the Social Security program, if the benefits are not cut. If this is the solution chosen, there is a possibility that the payroll tax rate will increase by 3.14% to be able to further support the program, or even by 4.13% if no action is taken by 2035.
Currently, the payroll taxes that finance Social Security are set at 6.2%, for both workers and employers, and for self-employed people the percentage is, obviously, 12.4%. Although this is not necessarily the most preferred solution, let’s see what forms this possible increase in the payroll tax rate could take.