As Social Security's funding problems loom ever closer on the horizon, the program has emerged as a pet project on many lawmakers' fix-it list. Now in control of the House, Democrats have thrown their weight behind a measure that would extend and expand the program — largely by asking high earners to pony up, along with a gradual increase in the Social Security tax rate that applies to workers' income. "Democrats have agreed that we should expand, not cut, Social Security and have the wealthy pay their share," said Nancy Altman, president of advocacy group Social Security Works.

photojournalis | Getty Images

Due to a variety of factors — including an aging demographic, longer life spans, lower birth rates and the widening income gap — the Social Security Trustees 2018 report projects that beneficiaries will see a 21 percent cut in benefits by 2034 unless Congress takes action to prevent the funding shortfall. The Congressional Budget Office's estimate is more dire, pegging the year at 2031. More than 200 lawmakers, all Democrats, have signed onto the Social Security 2100 Act in the House. Introduced by Rep. John Larson, D-Connecticut, the bill would require that earnings above $400,000 be subject to the payroll tax that funds the program. Currently, earnings above a certain level — $132,900 for 2019 — are not subject to Social Security taxation. This means someone who makes $132,900 pays the same amount into the program as someone earning, say, $1 million. A CBO report released in December shows that because earnings for the highest-paid workers have grown faster than the average wage, about 83 percent of earnings fell below the Social Security's taxable wage cap in 2016, down from 90 percent in 1983. "When Congress enacted Social Security changes in 1983, no one anticipated the income stagnation," Altman said.

The bill also would gradually increase the payroll contribution by workers and employers to 7.4 percent each by 2043 from 6.2 percent (to 14.8 percent altogether from the current 12.4 percent). Social Security recipients also would benefit, getting an increase of about 2 percent of average benefits. And, the yearly cost-of-living adjustment — called COLA — would use a different formula to determine annual bumps intended to more accurately reflects rising costs for older Americans. Additionally, the bill also would create a new minimum benefit set at 125 percent of the poverty line and take other steps to ease financial pressure on retirees, including doubling the amount of Social Security income that isn't subject to taxation. The end result would be extended solvency for the program for 75 years, according to Social Security's Office of the Chief Actuary.