Playing Politics With Social Security

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Extending the payroll tax cut is not a real solution nor does it help sustain Social Security. There are a number of other options for making Social Security a sustainable program and for reducing the deficit. Progressive price indexing would substantially reduce the long-run funding gap to $3.2 trillion from the current law funding gap of $16.1 trillion. Thus, it would only require a modest solvency tax increase equal to 0.6% of taxable payroll. In terms of long-run spending, it would result in the second smallest program, about 82 percent of the size of the current program. Also, changing the benefit formula for SS would essentially eliminate the long-run funding gap and require no additional solvency tax. It also would produce the most dramatic reduction in spending on benefits, equal to 23% of long-run spending under the current benefit formula. In addition, it would retain the progressive nature of the benefit formula, but reduces the degree of progressivity relative to the current formula. Furthermore, raising the retirement age would reduce Social Security's unfunded obligations for retiree benefits to $6.3 trillion and require a solvency tax of 1.3% of taxable payroll. It would result in the third-largest program, with about 87% of the current law spending. Moreover, though the distribution of net taxes would still be progressive, of the four potential changes considered it would reduce the degree of progressivity the most relative to current law. Finally, eliminating the taxable maximum would reduce Social Security's unfunded obligation for retiree benefits to $8.3 trillion and require a 1.3% payroll tax increase. It would result in the largest program in terms of long-run spending, and would increase the progressivity of the program (http://eng.am/sWDUJ8).

Carly EngageAmerica of NY 3:54PM December 14, 2011

"But there is no crisis in Social Security and no reason to scare the daylights out of the more than 50 million Americans who depend on the program's retirement and disability benefits." It must have been a huge relief to read this passage. Millions of disabled people rely on these benefits to keep a roof over their heads and keep food on the table. If you or a loved one are disabled, and would like to be connected with a specialized SSD attorney in your area to help you receive disability benefits, check out http://www.socialsecurity-disability.org .

SSDAdvocate of MA 10:33AM December 13, 2011

This is steeling from Tiny Tim and right at Christmas too.God will get them for this as Maud would have said.First of all they can never catch up with the last two years of cuts , with the raise they have coming this year.Get real, "The very people who built the buildings they are all working in, and walking on with their tax dollars during their working years, and saved money out of every pay check for Social Security for their old age are being CHEATED" And what they pay into now goes back to the ones who are receiving it now, that is the way it works.And most of them would not qualify for any kind of work at all. They need to realize that that California already make a mess of it over furlows in Social Security, and ended up costing more money than saved.Most working middle, and lower class have a large tax refund check if they claim dependants, including elderly.They do not need another tax brake. Fact , not fiction.

Patricia Moore of FL 11:23PM December 12, 2011

Just a nit but self employed people don't pay the full 15.3% - they pay .935 times that plus they get an adjustment to income equal to 1/2 the tax.

bob mischler of WV 4:08PM December 12, 2011

The good news is that the Social Security Trust Fund has $ 2 Trillion in it, enough to keep Social Security solvent for the next 10 years.
The bad news is that the Federal Government has borrowed $ 2 Trillion from the Social Security Trust Fund, and must find a way to re-pay that money over the next 10 years. It must pay this back by increasing taxes, lowering spending, or borrowing from someplace other that the Social Security Trust Fund.

Richard of CO 3:48PM December 12, 2011

Mr. Moeller: You have written some interesting articles about Social Security. How about doing an article on what happens when a senior citizen is robbed of their checks (three times), then decides to get direct deposit and they (SS) then makes a massive transmittal to the account, then takes away their social security because they say its the senior's fault because the checks (robbed) were cashed twice by the senior. When the senior applies to their Representative for help, SS give them the same answer and pays no attention to the senior. This senior I'm talking about only worked approx. 50 years and now has nobody to turn to about SS benefits. This senior I'm talking about didn't knowingly cash any checks twice and paid back the $16,695 incorrect transmittal that SS made directly to their account very promptly. This senior I'm talking about learned of the incorrect transmittal from a phone call from SS while in the hospital with an emergency cardiac event. This senior I'm talking about (to this day, 12/12) doesn't know if they'll ever get any more social security or not. I wonder how many other seniors have been treated this way because of fraud, stolen checks, etc. AND then when they submit to direct deposit their bank account is invaded with Social Security's errors. Please do an article(s) on this type of treatment because right now I've been made to feel like a dirty rotten dog by SS. Thank you!

Shirley Johnson of PA 2:16PM December 12, 2011

To ignore a United States Senator's public confession on the floor of the U.S. Senate, is to invite more of the same. Senator Tom Coburn from Ok.: http://bit.ly/qIElNQ Judge Ray Holbrook, the Tx. Judge who was the catalyst for putting the Galveston retirement plan in place, has endorsed a jobs creating, retirement plan. This plan keeps the vast majority of retirement dollars on main street, funding local projects like building or repairing bridges, roads, and schools. Local tax dollars no longer leave local communities to pay off some wall street bankster, they stay at home in local communities. The plan is called AmeirCareToday, or ACT. http://bit.ly/qbq62z

pappyg of FL 2:12PM December 12, 2011