Consequences Of Funding Social Security

901 Words4 Pages
There are many proposed ways to deal with the problem of funding social security in our country's future. The problem, though, is not with funding social security as much as it is with the consequences of funding social security and what those consequences will mean for us when we reach the retirement age. Playing the social security game demonstrated some proposed solutions to help fund social security, and the consequences that went along with allotting that funding. There are three basic ways to fix the social security problem: reduce benefits, increase revenue, or investing money in the private sector. Benefit reduction requires cutting out some current funding in the future to save on total costs. Increasing revenues allows for continued…show more content…
Doing this would account for 70% of the funding needed to keep social security going for the years to come, but it comes at a very big cost. I don't believe that “progressive indexing” would necessarily be a good idea, because it would affect so many people. This is meant to take some of the benefits from the workers that make more money and spread this around to help make up for others that may be lacking. The problem that I see is that $20,000 per year is too low, and may end up taking extra benefits from people who are in severe need of it. If “progressive indexing” were to be implemented I would propose raising that minimum to $35,000. This would obviously cut into the funding, but it would still offer some help with it and I believe that it would be more fairly distributed to the ones in need. There were four changes that I would make to solve the social security…show more content…
Capping the annual earnings at $118,000 stops people that make more money from getting a tax break by the cap. If people that make less have to pay a percentage of their income to social security, then people who make more money should have to pay that percentage too. The argument to this source is that employers don't want to pay the extra taxes and people that make higher wages don't see return on their taxes paid, and that interest in social security would decline. I think that the nation in general would benefit from a national retirement plan, so paying that extra tax money should pay off in the end when we have a solid nation-wide retirement plan that everyone can count

More about Consequences Of Funding Social Security

Open Document