Both Biden & Trump Social Security “fixes” miss the mark - AMAC & The Motley Fool
Sean Williams has a piece that describes the stark reality of leaving the Social Security program alone– benefit cuts in excess of 20% in a decade. Williams notes that since 1985, the annually released Social Security Board of Trustees Report has cautioned that long-term revenue collection (i.e., the 75 years following the release of a report) would be insufficient to cover payments, and the magnitude of this deficit has grown over time. The 2024 Trustees report estimated the program is staring down a long-term funding shortfall of $23.2 trillion. He further dispels the myths of illegal aliens and Congress stealing the money and puts the blame squarely where it need be– demographics. Lastly, he notes Donald Trump kicks the can down the road, while Joe Biden’s tax increase is mostly offset by providing more generous benefits, a strange concept for a program in financial peril. He suggests a reform like the Social Security Amendments of 1983, which combined proposals from both parties. Full article here.
As an 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. This can be achieved without tax increases by slight modifications to cost of living adjustments and payments to high income beneficiaries plus gradually increasing the full (but not early) retirement age. AMAC Action, AMAC’s advocacy arm, supports an increase in the threshold where benefits are taxed and then indexing for inflation, and calls for eliminating the reduction in people’s benefits for those choosing to work before full retirement age. 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.