Friday Wrap-Up: More Thoughts on the Nagging Insolvency Problem
Citing examples of congressional actions exacerbating Social Security’s financial troubles (think WEP/GPO repeal, for instance), Forbes Senior Contributor Howard Gleckman offers a recap of corrective measures being advanced by policy experts. As Gleckman explains, many of the measures differ considerably in their approach but share a common goal: “To restore long-term solvency of the program while improving its ability to support lower-income workers in old age.” As his post suggests, the viewpoints of experts are a “breath of fresh air” at a time when Social Security’s rapidly deteriorating financial picture seems unable to attract lawmakers’ attention.
The Gleckman post (click here) draws on comments from the Progressive Policy Institute, the Brookings Institution, the Urban Institute, the Committee for a Responsible Federal Budget, and the CATO Institute. In his commentary, Gleckman summarizes the key policy changes advocated by each organization and their overall effects on Social Security, and stresses that they help focus the public’s attention on a problem that is not self-correcting.
These five organizations are certainly key players in providing informed guidance to Congress in the search for a solution to Social Security’s financial problems. There are others also working toward the common purpose of ensuring the long-term viability of this critical program. As another 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 to meet the demands of 21st-century economics.
AMAC’s position is that this can be achieved without payroll tax increases through relatively minor program modifications, including changes to the cost-of-living adjustment (COLA) process and modifications to the formulas for calculating payments to higher-income beneficiaries. Changes to the age for maximizing benefits are included in AMAC’s position, along with steps to ensure that a larger percentage of total worker earnings are subject to FICA/SECA payroll taxes. Other changes advocated by AMAC include (1) an increase in the thresholds where benefits are subject to income tax; (2) indexing of these thresholds annually to account for inflation; (3) improved survivor benefits, (4) eliminating the reduction in benefits for those choosing to work before full retirement age; and (5) improved savings tools for future retirees, including a savings account that builds estate value. AMAC is resolute in its mission to preserve Social Security for current and future generations and has drawn the attention of lawmakers in D.C., meeting with many congressional offices and staff over the past decade. For more information on the AMAC proposal, read the “AMAC Social Security Guarantee” document on their website.