Indirect fixes not enough to cure Social Security’s ills
Sean Williams notes that President Trump rarely talks about Social Security changes or fixes because the President believes a strengthening economy is the cure for what ails the program. Indeed, Williams notes that tactic worked in 2018, as payroll tax revenue surged. But the strategy only provided a temporary reprieve (1 year) before the program is due to reach insolvency. At that point it will only be able to pay about 80% of promised benefits. That year went form 2034 to 2035. But nothing is going to be gained this year, as Social Security’s problems are more systemic and demographic, such as declining birthrates and rising life expectancy. The program will begin running a deficit in 2020 and will do so every year until all past reserves are exhausted in 2035. Experts are calling for more radical reform like benefit adjustments for high income earners, retirement age changes, or increasing payroll taxes. Read more here.
The Association of Mature American Citizens (AMAC) believes Social Security must be preserved and modernized. This can be achieved by making modest changes in cost of living adjustments and the retirement age, with no additional taxes on workers. AMAC advocates for a bipartisan compromise, “The Social Security Guarantee Act,” taking selected portions of bills introduced by former Rep. Johnson (R-TX) and current Rep. Larson (D-CT) and merging them with the Association’s own well researched ideas. One component is Social Security PLUS, a new, voluntary plan that would allow all earners to have more income available at retirement. This component is intended to appeal especially to younger workers. AMAC is resolute in its mission that Social Security be preserved and modernized and has gotten the attention of lawmakers in DC, meeting with a great many congressional offices and their staffs over the past several years. Read AMAC’s plan here.