How the next U.S. president may address Social Security running dry - AMAC & CNBC
The problem has been known for a decade or more– that the Social Security Trust fund (also referred to as reserves or surpluses) will be depleted by 2034. Benefits will then be reduced 20% or more for all across the board. One would think such an impending crisis would attract attention from presidential candidates, especially since most Americans rank Social Security as “one of the top” or a “very important” issue in determining their vote in November, a recent CNBC poll found. Lorie Konish notes neither tackles the big issue, but each has separate ideas on Social Security. Trump touts elimination of income tax, which would save many individuals about $1,400 a year, though that amount is offset by over $6,000 increases to folks if he imposes across the board tariffs. The idea also hastens insolvency. Democrats want to impose FICA taxes on income over $250k or $400k (separate proposals). That would bring in revenue and shore up the fund for a time, though not solve the long term problem posed by changing demographics. 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.