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Will Social Security be an Issue in the Upcoming Midterm Elections? - Nwsweek
Well, of course it will, as so eloquently expressed in this Newsweek article by Suzanne Blake. The article starts out by discussing a recent endorsement by Iowa Senate candidate Josh Turek for for raising the Social Security Taxable Maximum. But the article goes on to dig more deeply into the overall SS solvency issue, including why it exists as well as how a recent bipartisan effort in Congress which seeks to eliminate the SS taxable maximum would be one way to shore up Social Security finances. Of course, at this moment in time, almost all comments by those seeking election or re-election are intended to convince voters that the candidate supports “saving” Social Security. But until Congress actually takes meaningful action to reform the SS program, all such conversation is simply political rhetoric. Nevertheless, the article is interesting because it lays out the problem Social Security is facing, and highlights the urgency of program reform.
As an example of leading thinking on reforming Social Security, the Association of Mature American Citizens (AMAC, Inc.) 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. See AMAC’s proposal for Social Security reform here.