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A Thought on Increasing Social Security’s Revenue Picture
Addressing Social Security’s long-term financial problems typically comes down to two fundamental moves: increasing the incoming revenue or decreasing the outgoing benefits. Either move presents challenges for policymakers, and that’s why there’s a constant search for new and novel approaches. Organizations like the Center for Retirement Research at Boston College are constantly on the lookout for ideas to innovative ideas to address the insolvency problem…here’s one.
An article by ThinkAdvisor senior reporter John Manganaro on their website poses the thought of including workplace health care benefits in the payroll tax calculation as a way to increase program revenue. And it’s not a small matter, since estimates are that such a move could reduce the 75-year shortfall by as much as 25%. Unfortunately, a change of this type would be regressive, impacting lower wage earners more than those with earnings exceeding the current-law taxable maximum.
Nevertheless, it’s a suggestion that needs to go into the mix as Congress considers solutions to Social Security’s financial problems. For more details on the issue, check out the Manganaro post here…