Biden’s 4-Point Plan to Change Social Security Barely Moves Needle - AMAC & The Motley Fool
Sean Williams writes often about Social Security and other finance issues. He describes President Biden’s four point plan to change Social Security, which is facing insolvency in just 10 years. The problem is the plan barely moves the needle. An extra “five years” of solvency is what the respected Urban Institute says the plan will achieve. The plan includes 1.) reinstating the combined 12.4% payroll tax on income above $400,000; 2.) using a new inflation calculation called CPI-E to replace the current CPI-W; 3.) bolstering the special minimum benefit; and 4.) lifting payouts for beneficiaries aged 78-82. Given increased longevity and declining birth rates, “sweeping benefit cuts are needed to sustain payouts” according to Williams. Full piece here.
The Association of Mature American Citizens (AMAC) believes Social Security must be preserved and modernized. This can be achieved without tax increases by slight modifications to cost of living adjustments and payments to the highest income beneficiaries plus gradually increasing the full (but not early) retirement age. AMAC’s plan also increases the threshold where benefits are taxed and then indexes for inflation, and the plan eliminates reducing people’s benefits for those choosing to work before full retirement age. AMAC is resolute in its mission that Social Security be preserved for current and successive generations and has gotten the attention of lawmakers in D.C., meeting with a great many congressional offices and their staffs over the past decade. See it here.