Introduction
The start of Social Security began when President Franklin D. Roosevelt signed the Social Security Act on August 14, 1935. In 2014, the Congressional Budget Office, CBO, estimated that approximately 60 million people received Social Security Benefits. The income tax on the Social Security benefits was $51 billion in that year (Shakin and Seibert, 2015). Almost one third of U.S. retirees depend exclusively upon Social Security benefits for their retirement income (Hopkins, 2014). It is the matter of fact that despite its significance and positive history of providing retirement income to the elderly, Social Security has its own issues and cannot continue down the same path for much longer. However, the proposed tax policy (Team A’s), making social security benefits as a welfare program for older Americans but not for those has sufficient income is not an …show more content…
The gap in funding threatens massive budget deficits. One of the disadvantages of the Social Security system as it is presently designed is that the money citizens contribute over a lifetime to Social Security could potentially yield higher returns if invested privately (Reader, 2015). Another disadvantage of our current tax system with regards to the social security benefits is that people have this perception that they would be able to survive and their Social Security Benefits after they retire, which was the idea that was pitched to these employees when they invested in this program. It is very sad that people work so hard to live the way they want to live and come to find out that when they retire it now becomes a struggle to upkeep their living arrangements. Instead of retiring in 30 years or at the age of 60, many may have to work few more years to at least receive 80 percent of the salaries or many retire, like my grandfather, but go back in the workforce to compensate what they need to survive and keep their heads above
The start of Social Security began when President Franklin D. Roosevelt signed the Social Security Act on August 14, 1935. In 2014, the Congressional Budget Office, CBO, estimated that approximately 60 million people received Social Security Benefits. The income tax on the Social Security benefits was $51 billion in that year (Shakin and Seibert, 2015). Almost one third of U.S. retirees depend exclusively upon Social Security benefits for their retirement income (Hopkins, 2014). It is the matter of fact that despite its significance and positive history of providing retirement income to the elderly, Social Security has its own issues and cannot continue down the same path for much longer. However, the proposed tax policy (Team A’s), making social security benefits as a welfare program for older Americans but not for those has sufficient income is not an …show more content…
The gap in funding threatens massive budget deficits. One of the disadvantages of the Social Security system as it is presently designed is that the money citizens contribute over a lifetime to Social Security could potentially yield higher returns if invested privately (Reader, 2015). Another disadvantage of our current tax system with regards to the social security benefits is that people have this perception that they would be able to survive and their Social Security Benefits after they retire, which was the idea that was pitched to these employees when they invested in this program. It is very sad that people work so hard to live the way they want to live and come to find out that when they retire it now becomes a struggle to upkeep their living arrangements. Instead of retiring in 30 years or at the age of 60, many may have to work few more years to at least receive 80 percent of the salaries or many retire, like my grandfather, but go back in the workforce to compensate what they need to survive and keep their heads above