We all realize that Social Security is already paying out more than it takes in. The "concept" that what I pay currently into the system is for me later in my life is a myth. The current taxes collected pay the current benefits which is fine, if the collections are greater than the payout. So how do we fix this? Some have suggested privatizing as an option (AN OPTION, NOT MANDATORY!!!), but to transition, it would take away too much of the current monies being paid out to beneficiaries. I do think the plan has some good ideas, but not practical at this point.
The real practical solution I believe is the following:
- Raise the retirement age. We are living longer than ever and the system can not afford to pay benefits based on when people lived a lot shorter
- Raise threshold on the social security tax which a cap that will provide the system with liquidity for years to come. As much as I hate this, when you have fewer people paying in and more people getting benefits, then this option must be seriously considered. THESE INCREASED TAXES SHOULD BE SET ASIDE AND ONLY USED FOR SS BENEFITS so the Congress doesn't just waste the money somewhere else.
People have suggested reducing or eliminating benefits for wealthy people. I think that option should be put forth, but will not move the needle much in the scheme of things.
While the above seems like a tax hike or making people work longer, it is a practical solution that would fix a large part of the problem. Extreme positions on both sides of the aisle will not fix anything, but push the program closer the edge of insolvency. I am open to BO, JB, MR or PR coming up with something that will pass Congress instead of utopian ideas that will never move forward.
Let's fix things instead of just talking about it!