It’s not Social Security. Social Security’s shortfall is modest. It arises because so much income has gone to top earners in recent years that the payroll tax covers a smaller percentage of overall income than was planned for. I should know. I used to be a trustee of the Social Security trust fund.
The obvious answer is to lift the cap on income subject to Social Security payroll taxes, now $106,800, to about $150,000.
Nor is the real problem Medicare. It’s what lies behind Medicare’s projected growth: the explosive growth in medical costs...
The answer is to finish the job of reforming health care. How? Let Medicare use its bargaining leverage to get low-cost drugs and supplies. End health insurer’s immunity from antitrust laws. Allow the public to buy health insurance from a Medicare-like public option. And award plans that focus on disease prevention rather than expensive diagnostics and procedures.