If you take a look at your last pay stub, you will find a line marked OASDI. It stands for Old-Age, Survivors, and Disability Insurance, which is the formal name for Social Security. The tax on that line is 6.2% of your wages. What you do not see on that stub is that your employer paid a matching 6.2% of your paycheck directly to the U.S. Treasury. On a $60,000 salary, those two halves equal $7,440 a year. Exactly $0.00 of it went into an account bearing your name. Every single penny went out immediately as a check to a current retiree or a disabled American.
The entire system rests on a beautifully simple, multi-generational promise: Today’s workers carry today’s retirees, and tomorrow’s workers will carry us. For decades, more money came in than went out. But instead of saving the surplus, Washington borrowed the extra cash, spent it on daily government operations, and left a stack of non-marketable IOUs in a drawer. Federal bureaucrats call that paper a “trust fund.” In reality, calling it a trust fund is like putting an IOU in your kid’s piggy bank and telling them their college tuition is fully funded.
Since 2021, the program has paid out more than it takes in. To cover the shortfall, the government has been cashing those IOUs, forcing the Treasury to borrow massive amounts from the public. By 2034, the drawer for the combined retirement and disability funds will be completely empty. By law, that means every retiree’s check will instantly face a devastating 17% automatic haircut.
Enter Brian Poindexter, the Democratic candidate for Congress in Ohio’s 7th District. He claims he can fix it. Today, the Social Security tax stops once a worker earns $184,500 in a year. His plan calls for three dramatic shifts: remove that income limit so high earners pay on every dollar, let people collect full checks at a younger age, and make the checks bigger. Removing the cap, he confidently promises, “will instantly make it solve.”
