Trillions Dodged in Taxes by Ultra-Rich Could Fund Social Security Until 2100, Wyden Reveals

The Democratic head of the Senate Finance Committee argued on Wednesday that instead of reneging on Social Security’s firm promise by reducing benefits, legislators should focus on ultra-rich tax evaders as a way to maintain the New Deal program’s full solvency for the forthcoming decades.

“Almost $2 trillion in taxes is being evaded by the super-wealthy every decade,” stated Sen. Ron Wyden (D-Ore.) during a Senate Budget Committee hearing. “This is sufficient to keep Social Security intact until the end of this century.”

“We should start making headway in this direction,” added Wyden.

The senator’s comments were made during a hearing titled “Social Security Forever: Providing Benefits and Safeguarding Retirement Security,” which included testimony from Social Security Administration Commissioner Martin O’Malley and several expert witnesses.

Sen. Sheldon Whitehouse (D-R.I.), who chaired the hearing, utilized his opening remarks to criticize GOP proposals to increase the retirement age, a change he stated would “disproportionately affect low-income retirees.”

Whitehouse, the head of the Senate Budget Committee, acknowledged that some Republicans have resisted the idea that the GOP wants to reduce Social Security benefits. However, if Social Security benefit cuts “are genuinely off the table,” the senator stated, “the only other alternative to avert insolvency is to increase revenue.”

“There are no other alternatives. That implies we need to start exploring smart, equitable ways to raise revenue, fund the Social Security Trust Fund, and safeguard and maintain benefits,” continued Whitehouse. “Fortunately, there are solutions like my Medicare and Social Security Fair Share Act that would both indefinitely extend Social Security solvency with no benefit cuts and make our tax system more equitable.”

The hearing on Wednesday occurred amidst a presidential race where Social Security has been a significant topic, with Democrats warning that GOP nominee Donald Trump would advocate for substantial benefit reductions if re-elected for another term in the White House.

Democratic nominee Kamala Harris was the only one to mention Social Security during Tuesday night’s debate, pledging to defend the program that lifted 28 million people out of poverty the previous year.

Following the debate, Max Richtman, president and CEO of the National Committee to Preserve Social Security and Medicare, stated that while Harris reinforced “her commitment to Social Security and Medicare,” Trump “remained silent on the matter.”

“When Trump refrains from speaking, he cannot exacerbate his numerous conflicting and confusing statements about Social Security and Medicare—from labeling Social Security a ‘Ponzi scheme’ to expressing openness to ‘cutting entitlements’ and proposing to eliminate some taxes that fund Social Security,” said Richtman. “Tonight’s debate emphasizes the fundamental reality that one candidate in this race will genuinely protect Social Security and Medicare—and that candidate is Kamala Harris.”

According to the latest trustees report, Social Security is poised to fully cover all benefits and administrative costs until 2035 and is 90% funded for the next 25 years.

For years, progressive lawmakers and advocacy groups have argued that the best way to ensure Social Security’s long-term solvency is straightforward: make the wealthy contribute their fair share to the program. Due to the payroll tax cap, millionaires ceased contributing to Social Security just 60 days into 2024.

“Warren Buffett ceases to contribute to Social Security 30 seconds into the new year,” O’Malley stated during his testimony at Wednesday’s Senate hearing, “while the people who clean these buildings contribute through their paychecks all year round.”