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Social Security |
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For many millions of current and future retirees, Social Security
is the key to a dignified and secure retirement.
Unfortunately, this program is now in desperate financial
condition. Contrary to some claims, Social Security is not
solvent as the Trust Fund has been looted by both Democrats and
Republicans and the real funding deficit - what we will collect in
taxes under current law and what we will pay retirees - is a
staggering $8 trillion. Congress will need to make difficult
decision to protect Social Security for current beneficiaries as
well as ensuring the program remains solvent for decades to come.
It's important to
understand the Trust Fund was established to hold the extra monies
paid to Social Security for the past 25 years that were intended
to be used as Baby Boomers retire. These funds should supplement
payments by current workers to keep the system solvent through
2035, but instead of a fund with about $2.5 trillion, we are left
with zero dollars and an insolvent program in 2010. To put it
another way we (Baby Boomers) spent the money we should have saved
for our retirement and now will tax our children and grandchildren
to make up the difference. I do not believe we can allow our
failures to adversely impact their future so there must be
sacrifice on our part to help heal the program.
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Here are some options that
could help bring the system back towards solvency:
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Increase Eligibility Age:
We should increase the age when a normal retiree can collect
Social Security benefits to 70 years old. This can be phased
in over a few years with some means testing to make sure
those who are close to retiring now, and who might not be in
a financially strong position, can start drawing benefits
based on current law.
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Increase Wage
Cap:
Raise the maximum payroll amount that can be taxed from
$106,800 to $150,000. This would keep total wages taxed
under 90% - less than the level subject to tax through most
of Social Security’s history.
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Progressive Indexing for
Higher Incomes:
Reduce benefits to higher income individuals to make sure
available benefits are targeted to those most in need.
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Reduce COLA Adjustment:
Retiree benefits are adjusted annually to reflect changes in
the cost of living. If the rate of increase is reduced by
.5% for certain individuals, the long-term payouts will be
lowered which will improve system solvency.
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Benefit Deferral:
Let a retiree postpone receiving benefits, allowing for an
increase in future payouts, but at a level less than
would've been paid if benefits were drawn at an earlier age.
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These changes will not
solve all of Social Security's financial problems, but it's a
start. This election should challenge candidates to explain their
plan to fix Social Security without shifting the entire burden to
our children and grandchildren. |
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It's time for
fiscally responsible, independent representation for NH
in Congress
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It's
time for Tim !
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