Economic growth will be restrained by Social Security 2100 Act
A highly respected and credentialed economist has reviewed House Democrats recent bill to “solve” Social Security’s financial woes. The bill, known as The Social Security 2100 Act, essentially proposes to substantially raise Social Security payroll taxes to cover the cost of proposed benefit increases as well as eliminating the projected short fall which threatens to deplete the Social Trust fund. The problem is, as described in this Forbes article by Andrew Biggs and confirmed by studies, raising taxes would restrain the economy to the tune of about $1.6 trillion, resulting in economic slow down. Reality is that when taxes go up, people work less and spend less. And when people work less and spend less, they also save less, exacerbating America’s retirement savings problem and stifling the Government’s revenue from taxes, thus hampering economic growth. The article continues by concluding that a more reasonable approach to Social Security is marrying more modest tax increases with realistic spending cuts.
AMAC has been at the forefront trying to strengthen Social Security by developing and proposing its Social Security Guarantee. AMAC has been discussing and continues to discuss this common-sense solution with Congressional Representatives in its efforts to protect America’s senior citizens who rely on Social Security. To review AMAC‘s Social Security Guarantee, click here.
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