Social Security1 :: essays papers

Social Security1Social Security is a federal redistribution program that collects payroll taxes from rate of flow workers to provide pensions for current retirees. Since the authorities is expecting a large amount of retirees within the next twenty year, they leave proposed four plans to save Social Security. The four proposals are reducing benefits, increasing the loneliness age, raising payroll taxes, and privatizing part of the placement.Todays Social Security taxes crowd out other savings. Fixing the trust fund by raising taxes or gash benefits would be fairly simple, but both approaches would only make Social Security an even worse deal than it is now. Approximately 75 percent of American workers pay more in Social Security taxes than they do in income taxes. Based on the Social Security Administrations own assumptions, payroll tax range would have to increase from 12.4 to 19.5 percent for promised benefits to be paid. Although such tax increases might be sufficient to pa y promised future benefits, the economy would suffer severe consequences. raising Social Security taxes enough to keep the governments entitlements promises to future retirees would require doubling or tripling these taxes. That means taking 30 to 40 percent of all(prenominal) workers wages just to pay retirement benefits. Such tax hikes are not economically or politically feasible. Social Security reform moldiness not reduce the benefits of current retirees. In addition, it must allow Americans of all income levels to build a nest egg for the future. Real reform will also guarantee that all workers receive an adequate minimum retirement income. The benefits of current retirees must not be reduced. Washington has a moral contract with those who soon receive Social Security retirement benefits, as well as those who are so close to retirement that they have no other options for construction a retirement nest egg. Any real reform plan must guarantee in law that seniors re ceive every cent that they have been promised, including an accurate annual cost of living increase. As a first step to saving Social Security for future generations, Congress should pass a law giving every already retired American a contract that provides a legal guarantee of his or her Social Security retirement benefits. Finally, current workers should have the choice of either joining a Social Security system that includes personal retirement accounts or remaining in the existing system and taking whatever benefit is available at the time that they retire.