First of all, it’s essentially fanciful to call 27% of the electorate a “major political party”. But I understand how difficult fringe status is to accept.
Second, it works like this. Money comes into SS and money goes out. That balance of flow has been negative for some time. The way the total benefits are still being paid is via the accumulated Trust Fund of decades past.
That Trust Fund will hit zero in about 7 years.
At that point, theoretically, outflow will be limited to tax influx. This will be about a 25% cut in benefits (outflow).
Here are the proposals to fix it:
1) Raise the retirement age for FRA (Full Retirement Age). This has happened before. It’s not a new proposal.
2) Increase the FICA rate on currently working people.
3) Reduce benefit payout. That 25% mentioned above would be the number only if the reduction is evenly distributed across the entire population of people receiving SS. Odds are about 99% any such benefit reduction would be concentrated at the higher end of income and NOT evenly distributed.
4) Raise the income/salary limit at which FICA is no longer collected.
5) Increase the population of Soc Sec payers. This does not have to mean more immigration. There are many state government employees and teachers who are not in the Soc Sec program, but if you add them in order to collect more FICA, then those people will one day add to benefits collection.
6) A combination of above.
THere will be no benefit cut to SS. SS will be part of the deficit spending.
7. End the program and phase it out.