Eliminating 401(k) tax benefits to fund Social Security - Money
We all know the Social Security Trust Fund will be exhausted by 2034 if Congress does nothing, resulting in a 20 percent cut to Social Security beneficiaries, but is there a way to avoid this? According to new research published by the Center for Retirement Research at Boston College, if Congress were to eliminate the tax benefits allotted to 401(k)s, it would generate a “$185 billion annual increase in tax revenues, which could cover most of Social Security’s funding shortfall.” Pete Grieve explains how eliminating 401(k) tax benefits would work and who would benefit from it. Read Mr. Grieve’s article here…
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Increase the Social Security tax limit for higher earners – over the current lower limit of 168,000.
Implement Angie Craig’s “You earned it, you keep it” legislation to eliminate taxes on SS benefits.
At the very least, RAISE the provisional income limits for SS that has never been adjusted for inflation.
Gary,
Thank you very much for your feedback. Rest assured that AMAC is in Washington, D.C. every day, working to promote reforming Social Security with sensible legislation to restore the program to full solvency before any benefit cuts are needed. Increasing the payroll tax cap is but one of many proposals currently being considered, and the recently introduced “You earned it, you keep it” legislation is another. 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 raising the thresholds at which 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.
Once again, thank you for your feedback.
Regards,
Russell Gloor
National Social Security Advisor
The AMAC Foundation