It was reported this week that the U.S. gross national debt surpassed $40 trillion for the first time in history. While there are a number of factors that have contributed to this, it is not news that the entitlement programs have been on a path to insolvency for decades. Social Security, for example, is set to go bankrupt in just six years. The good news, however, is that there appears to be bipartisan support for Social Security Reform, according to a new poll from Voice of the People and the University of Maryland School of Public Policy.
By The Numbers:
Over 50% of respondents said they support four types of reforms: apply payroll tax to income above $400k; increase payroll tax rates to 13%; reduce benefits for top 20% of earners, and raise national retirement age to 68 years old.
Support for these potential reforms is bipartisan. Over 80% of Democrats and about 75% of Republicans and 75% Independents support applying payroll taxes to income over $400k; over 60% of Democrats, 60% of Republicans, and about 55% of Independents support increasing payroll tax rates to13%. Near 70% of Democrats, about 60% of Republicans and near 60% of Independents support reducing benefits for the top 20% of earners. And just over 50% of Democrats, Republicans, Independents support raising the national retirement age to 68 years old.
The Bottom Line: The national debt crisis is not news but remains a serious threat. The breakdown of federal spending shows why impactful cuts are so difficult. The majority of the government’s spending goes to social welfare programs like Social Security and Medicare and are politically untenable to cut or alter. After the November elections, these numbers show reforms may be something the public will be more open to accepting, with the right messaging and plan.
