A New Vision For Social Security Essay

792 Words Nov 16th, 2016 4 Pages
Social Security is one of the biggest domestic federals programs that is funded by the largest tax paid by most workers, the largest source of income for most retirees, and is relied by the most vulnerable people of society. The program is designed to provide benefits towards the elderly, disabled, and to families with eligible workers, who have died. Unfortunately, the program is financially unstable for the upcoming decades to come. Specifically, according to a news article by, National Affairs, written by, Andrew Biggs, “ A New Vision for Social Security”, “It is therefore incumbent upon today 's policymakers to address Social Security 's fiscal problems and to ensure the program can provide what its very name promises: security, or at least the confidence that benefits that are promised can and will be delivered.” Over the next 75 years, Social Security will be underfunded by $9.6 trillion. Without any changes to the program, the tax increases or benefit reductions required to keep the program sustainable will only grow larger.
To compensate, Social Security would have to do two of the following options to be “sustainably solvent” during the 75 year period, (1) immediate and permanent payroll-tax increase of 4% of wages, where the average Social Security payroll-tax bill would increase by 32%, (2) reduce benefits immediately and permanently by around 28%. To go in further in depth, the system may not be able to pay all of what the retirees put in, and receive what is…

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