Would Biden’s Plan for Social Security Work? - Motley Fool
Other than vague promises not to cut Social Security benefits, President Biden hasn’t addressed Social Security’s looming financial issues since he offered his so-called “4-Point Plan” in 2020. We therefore assume that the four-point plan is still on the President’s table for resolving Social Security’s woes which will come to a head in little more than a decade. But how does the President’s “4-Point Plan” hold up to scrutiny? Well, a D.C.-based think tank, the Urban Institute, did a detailed analysis of the President’s plan and found that it would only buy about another 5 years before the Trust Fund is depleted, essentially pushing the date that everyone’s benefits will be cut out to 2038 – hardly a long term solution. You can read all about the Urban Institute’s study in this Motley Fool article by Sean Williams.
As an example of the leading thoughts on reforming Social Security, the Association of Mature American Citizens (AMAC, Inc.) 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 high income beneficiaries plus gradually increasing the full (but not early) retirement age. AMAC Action, AMAC’s advocacy arm, supports an increase in the threshold where benefits are taxed and then indexing for inflation, and calls for eliminating the reduction in 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 many congressional offices and staff over the past decade.