As you can see below, every year for decades the Social Security trustees have been urging Congress to take action to keep the program solvent. These actions could have been gradual and minor and would have no affect on current beneficiaries.
Congress did nothing. Now we are faced with misinformation and lies about the program. Progressive politicians want to change the fundamental structure by having only so-called wealthy carry the funding burden thus abandoning the idea of us all sharing the cost of benefits for the current and future generations. They are pandering to create more division and envy among us.
Conservatives equally mislead taking a we need to control benefit cost often mislabeled as cut benefits approach.
Neither approach is justified or fair. If the American people want a strong government based retirement program they should be told the truth about the cost of funding it in the face of a changing, aging population. There is no need to change the basic funding approach as set up in 1935.
Every citizen must share the burden according to their means and proportionally share the benefits. That means the funding must come from those earnings on which benefits are based.
For those who see a partial solution as raising the taxable wage base, the ultimate benefits must rise based on those earnings albeit at a lower rate than lower income workers as is the case today.
Once the program is put on a solid footing, increasing benefits and the cost of doing so can be openly discussed. Would Americans pay an extra 1% of earnings to secure a greater income in retirement?
2003 Trustee Report
The combined OASDI Trust Funds are projected to become insolvent in 2042 under the long-range intermediate assumptions. For the trust funds to remain solvent throughout the 75-year projection period, the combined pay-roll tax rate could be increased immediately by 1.92 percentage points, benefits could be reduced immediately by 13 percent, a transfer of $3.5 trillion in general revenue (in net present value) could be made, or some combination of approaches could be adopted. Significantly larger changes, would be required to achieve solvency beyond 75 years.
2013 Trustee Report
For the combined OASI and DI Trust Funds to remain solvent throughout the 75-year projection period: (1) revenues would have to increase by an amount equivalent to an immediate and permanent payroll tax rate increase of 2.66 percentage points1 (from its current level of 12.40 percent to 15.06 percent); (2) scheduled benefits during the period would have to be reduced by an amount equivalent to an immediate and permanent reduction of 16.5 percent applied to all current and future beneficiaries, or 19.8 percent if the reductions were applied only to those who become initially eligible for benefits in 2013 or later; or (3) some combination of these approaches would have to be adopted.
The Trustees recommend that lawmakers address the projected trust fund shortfalls in a timely way in order to phase in necessary changes and give workers and beneficiaries time to adjust to them. Implementing changes soon would allow more generations to share in the needed revenue increases or reductions in scheduled benefits. Social Security will play a critical role in the lives of 58 million beneficiaries and 163 million covered workers and their families in 2013. With informed discussion, creative thinking, and timely legislative action, Social Security can continue to protect future generations.
2022 Trustee Report
Lawmakers have a broad continuum of policy options that would close or reduce Social Security's long-term financing shortfall. Cost estimates for many such policy options are available at http://www.ssa.gov/OACT/solvency/provisions/.
The Trustees recommend that lawmakers address the projected trust fund shortfalls in a timely way in order to phase in necessary changes gradually and give workers and beneficiaries time to adjust to them. Implementing changes sooner rather than later would allow more generations to share in the needed revenue increases or reductions in scheduled benefits. Social Security will play a critical role in the lives of 66million beneficiaries and 182 million covered workers and their families during 2022. With informed discussion, creative thinking, and timely legislative action, Social Security can continue to protect future generations.
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