Some are saying the 2024 presidential race is more about vibes than issues. Perhaps that's true. Even if that's the case, though, it doesn't mean there aren't issues that matter to many Americans.
The Motley Fool Ascent surveyed 2,000 Americans in July to determine their top financial priorities in the presidential election. One issue rose to the top for many survey respondents: Social Security.
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Social Security on their minds
Survey respondents were allowed to select up to three answers when asked about their top financial priorities in the 2024 presidential election. Inflation was the No. 1 response, with 60% of respondents naming it a top issue.
Social Security came in second place overall. Forty-two percent of Americans viewed the federal program as a top financial priority.
As you might expect, though, older Americans ranked Social Security higher than younger respondents. Seventy percent of baby boomers (individuals born between 1946 and 1964) selected Social Security as a top financial priority, making it the No. 1 issue for this generation.
Forty-seven percent of Gen X respondents (born between 1965 and 1980) chose Social Security as a top issue in the election. However, only 16% of Gen Z (individuals born between 1997 and 2012) and 29% of millennials (individuals born between 1981 and 1996) selected Social Security as a key financial priority.
Harris vs. Trump
What do the two major presidential candidates think about Social Security? Neither Kamala Harris nor Donald Trump have unveiled a detailed plan for the program. However, they have both talked about Social Security.
On Aug. 14, 2024, Harris posted on Meta Platforms' (META 1.18%) Facebook:
The Harris campaign hasn't said what changes she would make to Social Security if she wins in November. However, the 2024 Democratic Party platform calls for "asking the wealthiest Americans to pay their fair share" to support the program.
Harris supported President Biden's proposal to raise the cap on payroll taxes that help fund Social Security to include earnings above $400,000. As a U.S. Senator, she co-sponsored legislation that proposed increasing benefits and changing how the Social Security cost-of-living adjustments (COLAs) are made to better reflect costs for seniors.
On July 31, 2024, Trump posted on Trump Media & Technology Group's (DJT 1.00%) Truth Social, "Seniors should not pay tax on Social Security!" However, he has stated that he doesn't want to make any changes to Social Security itself.
At a town hall hosted by Fox News on Dec. 5, 2023, Trump said, "You don't have to touch Social Security. We have money laying in the ground far greater than anything we can do by hurting senior citizens with their Social Security." He suggested that the U.S. could use its oil and gas supply to fund Social Security, adding, "It will take care of everything."
Tick tock
Any proposals about Social Security have consequences. That's true regardless of which candidate supports the changes.
The Social Security Administration projects that subjecting all earnings above $400,000 to the payroll tax would eliminate 64% of Social Security's long-range shortfall. However, this analysis didn't include any benefits increases that Harris has supported in the past.
The nonpartisan Committee for a Responsible Federal Budget estimates Trump's plan to eliminate taxes on Social Security benefits would move up the date for when the Social Security trust funds are depleted by over one year. The organization also reviewed the former president's idea about using oil and gas drilling to fund the program and concluded, "[D]edicating current oil and gas leasing revenues to Social Security would cover less than 4 percent of its shortfall, and it would be impossible to fix Social Security even if all federal land were opened to drilling operations."
One thing is certain: Doing nothing about Social Security isn't a good idea. Based on the latest projections by the Social Security Trustees, the program will become insolvent by 2035 if no changes are made. After that point, benefits would have to be reduced significantly.
The clock is ticking until the November election -- and until the Social Security trust funds run out of money.
