Scott Galloway, a professor at New York University, recently made controversial comments about Social Security. He stated that “somewhere between 10% and 30% of people who get Social Security right now should not receive it. Because they don’t need it.” Galloway added, “I’ll go as high as a third of senior citizens should not be getting Social Security.”
Galloway suggests this as a way to reduce economic inequality in the U.S. and address insolvency issues within the Social Security program.
Without any reform, the Social Security trust funds are projected to be depleted by 2035, leading to an automatic 17% cut in benefits for all recipients at that time. “Something is wrong,” Galloway said, describing American seniors as “the wealthiest generation in the history of this planet.” He highlighted that approximately $1.2 trillion is transferred annually from younger generations to retirees, many of whom might not need the financial support. To address this imbalance, Galloway proposes eliminating benefits for the top 10% or 30% of wealthiest retirees.
Galloway’s proposed Social Security cuts
He argues that this could help reduce the financial burden on younger workers. Galloway also criticized the current payroll tax cap.
In 2025, American taxpayers only need to pay Social Security contributions on the first $176,100 they earn. He suggested eliminating the payroll tax cap for earnings above $400,000, although he acknowledged this alone would not solve the funding issues. Moreover, Galloway and the Manhattan Institute share the belief that the current system largely redistributes income upward, not downward.
The report states, “Because most retirees are wealthier than the taxpayers financing their benefits, Social Security today largely redistributes income upward.”
The report concludes, “A more progressive reform would scale back the unaffordable (and, in many cases, not fully earned) spending promises made to wealthier baby boomers.”
The debate on how to ensure the long-term viability of Social Security continues, with experts like Galloway emphasizing the importance of reforms to address the current challenges in this critical program.
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