- Mar 4, 2012
- Reaction score
- Republic of Florida
- Political Leaning
3 Reasons to Fix Social Security Now! - Reason.com1. Social Security is broke.
Social Security is already paying out more in benefits than it brings in via payroll taxes; it makes up the difference by drawing on surpluses built up over the past decades. According to the most recent report by Social Security’s trustees, those surpluses will be totally gone in 2033 and unless taxes get jacked up, the system will only be able to pay 75 percent of current benefits.
2. Social Security is a terrible investment.
People think of Social Security as a retirement account, but it yields a terrible rate of return. Researchers at the liberal Urban Institute estimate that virtually all people retiring in 2010 or later will receive far less in benefits than they paid into the system via payroll taxes. Nobody would stand for that in a voluntary retirement plan.
3. Social Security Screws Younger Workers.
Not only will younger workers get smaller benefits – if they get any benefits at all – we have no control over our contributions. What's more, we can’t will savings or unpaid benefits to heirs. The result is less disposable income now – and in retirement.
Common sense article from Reason. Really this is a broken record. Social Security has been headed downhill for decades, with the date where it will be unable to pay benefits closely approaching. It already takes in less than it pays out, and is cashing in bonds from the Treasury, which is also taking in less than it pays out. Lowering the payroll tax a couple years ago made it worse. And Im ignoring the fact that its unconstitutional in the first place.
Regardless, whenever someone tries to fix it, Democrats cry foul and use it as a wedge issue. Yet they propose little of their own. So, what solutions are you liberals willing to accept that conservatives also agree with?
Raise the tax rate?
Raise the retirement age?
Privatize all or a portion?
Let people opt out?
Means test and make it a welfare program?