Reforming Social Security and Medicare: Will it be done in time to avert chaos? - Magnolia Tribune
Unless you’ve been hibernating, you are surely aware that Social Security (perhaps the nation’s most important retirement program) and Medicare (the nations crucial senior healthcare program) are both forecasted by government experts to suffer financial insolvency in less than a decade (actually in just about 6 or 7 years). It’s not like this is news to Congress, because the Trustees of the Social Security and Medicare programs have been ringing the alarm bell for many years; Congress and many Presidents have simply ignore those warnings. But now, with insolvency looming so closely, the problem can no longer be ignored.
Fact is, solutions are possible (and have been offered), but the longer Congress continues to “kick the can down the road” the harder it will be to correct the problem. All of this is outlined in this excellent article by syndicated columnist Sid Salter in the Magnolia Tribune.
While some other organizations only verbally lament this looming crisis, The Association of Mature American Citizens (AMAC) is actively engaged in providing Congress with ideas for a long-term solution. As an example of leading thinking on reforming Social Security, AMAC believes Social Security must be preserved and modernized to serve future generations. AMAC’s position is that this can be achieved without payroll tax increases through relatively minor program modifications, including changes to the cost-of-living adjustment (COLA) process and modifications to the formulas for calculating initial benefits for higher-income beneficiaries. Changes to the age for maximizing benefits are included in AMAC’s position, along with (1) an increase in the thresholds where benefits are subject to income tax; (2) indexing of these thresholds annually to account for inflation; (3) changing the taxable maximum formula to address the unintended loss of revenue; (4) improving survivor benefits, (5) eliminating the reduction in benefits for those choosing to work before full retirement age; and (6) improving savings tools for future retirees, including a savings account that builds estate value. 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. See AMAC’s proposal for Social Security reform here.
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