Chuckanut
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Here is an article that attempts to explain why the Social Security deficit increased.
Why Did Social Security
Why Did Social Security
The program faces a manageable financing shortfall over the next 75 years, which should be addressed soon to restore confidence in the nation’s major retirement program and to give people time to adjust to needed changes.
skyvue said:I do not believe we will EVER see cuts to the actual payout (benefit) amount because that is a death blow politically to whoever would implement it. So the choices are to raise rates on everyone or remove the income cap. The income cap would be politically more acceptable and that seems to be what motivates our politicians on both sides of the aisle these days!
I would remove the income limit on contributions and tax everyone at 6.2% for their full income amount rather than cut it off at $106,400. I say this even though this would personally negatively impact me as I make more than this limit today. I would think this would make the program "solvent" over night?
Why just tax more for this issue? Why not tax everyone enough to balance the budget? For me, pols think it's their jobs to spend more & provide more benefits. & voters believe it or they wouldn't vote for people that promise more from government. That's the whole reason SS is in the hole - like every other program.I know it's not "fair" because benefits are capped to a certain level regardless of what you have contrubuted, but I would remove the income limit on contributions and tax everyone at 6.2% for their full income amount rather than cut it off at $106,400. I say this even though this would personally negatively impact me as I make more than this limit today. I would think this would make the program "solvent" over night?
I know it's not "fair" because benefits are capped to a certain level regardless of what you have contrubuted, but I would remove the income limit on contributions and tax everyone at 6.2% for their full income amount rather than cut it off at $106,400. I say this even though this would personally negatively impact me as I make more than this limit today. I would think this would make the program "solvent" over night?
If the question mark means you're not sure, the SS actuaries have already crunched the numbers. Long Range Solvency Provisions
It closes about 2/3 of the annual gap in the 2030-31 period.
And some of them that have been thought to be partial "solutions" may not be solutions at all. One idea was to peg future benefit increases to inflation rather than wage growth, but in the last few years inflation has risen faster than wages, and as long as unemployment remains high there's little reason to expect that to reverse any time soon.I believe that a combination of removing the earnings cap and raising the rate are required together to remove the 75 year deficit as one possible solution. There are many other partial solutions that in various combinations might work. All that is required is the political will to do it.
So true. I browsed through some of the Trustee's reports from 1941 to present. A lot of smart people have put a lot of thought and effort into keeping the plates spinning. Reality trumps theory every time.And some of them that have been thought to be partial "solutions" may not be solutions at all. One idea was to peg future benefit increases to inflation rather than wage growth, but in the last few years inflation has risen faster than wages, and as long as unemployment remains high there's little reason to expect that to reverse any time soon.