Joe Biden’s Pathway to Social Security Reform Analyzed - ThinkAdvisor.com
In an article by Contributing Editor Jane Wollman Rusoff on Thinkadvisor.com, William Reichenstein examines the ideas set forth by presumptive Democratic presidential nominee Joe Biden to preserve and strengthen Social Security. Reichenstein, head of research at Social Security Solutions, Inc. and Retiree, Inc. and Baylor University professor emeritus, notes that Biden’s “proposed framework” for accomplishing these goals hinges largely on eliminating the cap on earnings subject to payroll tax. Reichenstein labeled the plan unrealistic, suggesting that the outcome would be to transform Social Security from a required-savings program to even more of an income-redistribution plan.
The post by Ms. Rusoff recaps the thoughts presented by Reichenstein in a ThinkAdvisor interview, and touches on several points of disagreement with the Biden recommendations regarding Social Security. Reichenstein also provides thoughts on various “fixes” that could be considered to resolve the solvency issue, one of which is increasing the full retirement age. Another is increasing payroll taxes, while yet another is to reduce benefits. Check out the interview article here…
With legislative interest in Social Security reform beginning to accelerate in Washington, it’s important to note that there are several viable proposals circulating on Capitol Hill. For example, the Association of Mature American Citizens (AMAC) has for some time now been actively advocating for changes that will preserve and modernize Social Security. AMAC believes this can be achieved by making modest changes in cost of living adjustments and the retirement age, with no additional taxes on workers. AMAC supports a bipartisan compromise, “The Social Security Guarantee Act,” taking portions of bills introduced by the late Rep. Sam Johnson (R-TX) and current Rep. John Larson (D-CT) and merging them with the Association’s own research. 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 many congressional offices and staff over the past several years. Read AMAC’s plan here.