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Federal Government options for dealing with Social Security’s ailing financial health
Sean Williams of The Motley Fool lists eight options the federal government has at its disposal for dealing with the looming shortfall in Social Security expected in just over a decade. Some include raising the retirement age to means-testing as well as outright cutting benefits or changing the cost of living adjustment formula. But note, Social Security isn’t going to vanish, as the 12.4% payroll tax on earned income of workers and the taxation of benefits on middle and upper income recipients ensures that it won’t go bankrupt. Payouts can continue to be made ad infinitum, but the current payout schedule is unsustainable unless Congress finds a way to raise additional revenue or cut expenditures before across the board cuts of over 20% take effect in 2034. Read his full piece here.
Note, The Association of Mature American Citizens (AMAC) has developed a bipartisan compromise, “The Social Security Guarantee Act,” to strengthen Social Security for present and future generations with modest changes now to head off across the board cuts for all. The plan takes selected portions of bills introduced by Rep. Sam Johnson (R-TX) and Rep. John Larson (D-CT) and merges them with the AMAC’s original legislative framework to create the new Act. AMAC is resolute in its mission to get the attention of lawmakers in DC, meeting with many congressional offices and their legislative staffs over the years. Learn more about AMAC’s Social Security Guarantee here…