Social Security: Why Cutting Benefits Is a Necessary Evil
Sean Williams explains that the long term sustainability of Social Security must be addressed soon. One way to do this is to bring in more revenue, either by raising the payroll tax from its current combined 12.4% on employees and employers or raising the amount of wages (currently $132,900) that is subject to tax. The latter polls well, but the GOP in Congress is more keen on slowing the growth of expenditures. This means benefits would have to cut in some fashion. Williams explains raising taxes does not solve the main problem which is increasing life expectancy. People simply collect benefits far longer than ever intended when the program became law in 1935. Raising the retirement age gradually would address this. Read his full piece here.
The Association of Mature American Citizens (AMAC) believes Social Security must be preserved and modernized 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 many congressional offices and their staffs over the past several years. Read AMAC’s plan here.
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