Social Security is six years from insolvency - Fortune
We keep hearing that the phrase “Social Security Trust Fund insolvency” will happen soon. But most of us tune out the actual timeline of when it will happen. Social Security has six years left, according to the new report from the Penn Wharton Budget Model (PWBM) released on March 19th. The first instinct of politicians is to raise taxes to solve the problem; however, according to the PWBM researchers, this may be precisely the wrong move. Nick Lichtenberg, writing for Fortune, explains how the most instinctive move of raising taxes would be the most counterintuitive solution to the insolvency issue. Read Mr. Lictenberg’s article here…
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For its part, the Association of Mature American Citizens (AMAC) has been at the forefront trying to strengthen Social Security by developing and proposing its Social Security Guarantee which restores the program to solvency without raising payroll taxes. AMAC believes Social Security must be preserved and modernized to serve future generations. 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 initial benefits for higher-income beneficiaries. Changes to the age for maximizing benefits are included in AMAC’s position, along with (1) an increase in the thresholds where benefits are subject to income tax; (2) indexing of these thresholds annually to account for inflation; (3) changing the taxable maximum formula to address the unintended loss of revenue; (4) improving survivor benefits, (5) eliminating the reduction in benefits for those choosing to work before full retirement age; and (6) improving savings tools for future retirees, including a savings account that builds estate value. 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. More recently, AMAC has met with the Commissioner of Social Security to discuss Social Security reform. See AMAC’s proposal for Social Security reform here.