Social Security & insolvency – Invisible no more
Robert Wiseman of The Boston Globe has an op-ed that seeks to shine the light on a most important issue that has largely been invisible to voters– the insolvency of Social Security. He interviews Judd Gregg, a former GOP Congressman from New Hampshire and a long-time outspoken reform advocate. Gregg states point blank, “The key problem with Social Security is the baby boom generation is too big. The system wasn’t structured for the present demographic.” The key takeaway here is that a benefit cut of 20% for everyone is looking in just over a decade if Congress does not act. Past reserves (surpluses) that have built up for decades are keeping Social Security from cutting promised payments right now. Wiseman notes that Rep. John Larson’s Social Security 2100 Act will likely pass the House this fall. But the Senate is unlikely to act given that tax increases are in the bill. President Trump has shown little interest in Social Security, but Wiseman notes that a push for action from Trump to preserve the program could push the Senate to seek a true bi-partisan compromise, even if Larson’s bill as written may not appeal to the GOP. Read the full op-ed 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.