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Social Security Day of Reckoning Coming Soon
Anyone even slightly in the know about Social Security is aware a day of reckoning is coming. The program is currently paying out more in benefits than is collected in payroll taxes. That can only continue as long as there are past surpluses or reserves to continue paying full benefits. Reserves will be exhausted around 2033-34. Incoming revenue will only allow about 77% of benefits to be paid. Translation? Everyone checks will be cut 23% across the board. No vote in Congress; it will be automatic. Maurie Backman explains the shortfall issue further and implores Congress to reform the system before then in her full piece here.
AMAC believes Social Security must be preserved and modernized. This can be achieved without a tax increase by changing cost of living adjustments, the retirement age, and delayed credits. 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 research. One component is Social Security PLUS, a voluntary plan to allow all earners to have more income 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.