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Originally Posted by Princess Doreen
According to "some" people, the government can just tweak it and make it alright. Tweak meaning raise the % rate or the amount on which people have to pay, increase the retirement age to 75 or 80. Yup, you younger generation has absolutely nothing to worry about. Just keep paying into the Ponzi scheme.  |
None of that has to be done. No retirement age raises, no change in benefits.
If the cap is simply raised from the current $106,800 to about $200,000, SS is flush and readily funded for about 70 more years. If the cap is simply eliminated, SS has a surplus.
The Senate Democratic plan is to simply raise the cap. The Senate Republican plan is to take away benefits and raise the retirement age, as they don't want rich people paying more, so they will take from those least able to afford it (those making less than $106,800 per year)
"Out there" plans include means testing (so the rich don't get social security or as much, in spite of paying in) or privatizing it so Wall Street has control of your retirement fund.
Which should the country choose?
A good article on what doing different tweeks to SS will do in the long run:
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While all proposals put a dent in the shortfall, completely eliminating the cap without increasing benefits actually creates a long-term surplus, and eliminating the cap while increasing benefits comes close. The nature of Social Security as a social insurance, rather than welfare, program suggests that the latter proposal may be more palatable, as it retains the connection between what wage-earners pay into Social Security and what they get out of it.
http://voices.washingtonpost.com/ezr...s_could_r.html
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