A Summary of Bi-Partisan Suggestions for the Social Security Dilemma - The Motley Fool; AMAC

As the calendar continues to advance toward commencement of the 118th Congress, we’re seeing an uptick in reports of potential changes that could be considered to address this thorny and complex problem. In a post today on wfmz.com, The Motley Fool’s Trevor Jennewine recaps four of the items swirling in today’s news channels, beginning his article with a succinct recap of the problem and its origins. Read his full article here…

Jennewine’s post, drawn from a recent University of Maryland survey, places the four items in two broad categories: (1) tax increases and (2) expenditure reductions. In the former, he recaps first the much-talked-about potential of increasing the amount of earnings subject to payroll taxes and the simple process of increasing the long-standing 6.2%/12.4% FICA tax rates. In the second bracket, he outlines thoughts on reducing program outlays by raising the full retirement age and reducing benefits for higher earners. (Editorial comment: On this last point, he notes that “…workers that make more money get larger Social Security benefits when they retire.” He’s addressing means testing, but unfortunately does not note that the calculation is already means tested via the steps in the calculation process itself.”

Jennewine closes with an observation that the slow-turning wheels in Washington will likely not produce near-term changes for current beneficiaries. That’s certainly an accurate statement, although time is of the essence given the fact that we’re within the decade window for Social Security’s insolvency. The Association of Mature American Citizens (AMAC) has taken an aggressive stance on this issue for many years and has taken the position that Social Security must be modernized in order to be preserved for current and future generations. AMAC advocates for a bipartisan compromise, “The Social Security Guarantee Act,” taking selected portions of bills introduced by the late Rep. Sam Johnson (R-TX) and current Rep. John Larson (D-CT) and merging them with the Association’s own research. AMAC is resolute in its mission and has gotten the attention of lawmakers in DC, meeting with a great many congressional offices and their staff over the past several years.  Read AMAC’s plan here.

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