One way that the problem could be temporally solved is by changing the qualifications the receive compensation. The Social Security system would have to be more selective and eliminate at least one third of the beneficiaries to be successful for any significant length of time. Specific qualifications such as maximum working income to receive retirement compensation, and age at which compensation begins would be most sensible to change. Other qualifications such as income levels in which the worker made a certain total amount of money or is the recipient of a very sizeable inheritance and would not require Social Security compensation to live comfortably in retirement. Other such circumstances would include one-time income sources such as lottery winnings and other
“Paychecks for government workers, vendors and state and local governments would likely be withheld or not paid in their normal timely manner,” says Vincent Reinhart of the American Enterprise Institute. The Treasury might also decide to prioritize payments. Social Security recipients, who often rely on their check for daily living expenses, would probably be among the first in line. But so would bond holders: The government would likely do everything it could to protect its credit rating”. So by raising the dept ceiling the government would be able to avoid a shutdown that would greatly impact Americans.
This would allow individuals to set up their own personal Social Security accounts in which the taxes taken out of their earnings would be set aside in a private account especially set up for when they retire or stop working for whatever reason. Also with these funds, individuals would have the option to invest these funds in the stock market and potentially have a much higher return then what the current system of what the government provides for these individuals. There are many individuals who find this to be the best way to reform social security, claiming that the current way is extremely detrimental to the average American’s hope that the taxes they are paying for their future will provide for them when they are no longer able to work. Some have even described the current system similar to that of a government sponsored ponzi/pyramid scheme where as stated earlier, the funds coming in from current payroll taxes are made to look like surpluses. With the privatization of Social Security, this will give workers the contractual right to their retirement benefits, instead of the current system where the government has no liability to provide individuals with Social Security.
This will cause less money to flow through the economy eventually causing lenders to reduce the amount of loans being given. Taxpayers are not the only ones that can be affected by a surplus, deficit, and debt. Social Security and Medicare recipients can also be greatly affected by changes in the economy. In the past it was safe to assume that an individual would collect social security. Times are changing and some feel that social security might not be around for too much longer.
Ashley Trosin American Government 4/21/12 Social Security Reform By the mid-2020s, in addition to the 12.4% Social Security payroll tax, taxpaying workers would need to finance another $200 billion a year (in 2010) in Trust Fund bond redemptions just to keep full benefits flowing. (FDCH Congressional Testimonial) Many people are worried that by the time they need to retire, the social security system will be depleted. Such a beneficial system cannot be allowed to fail. All wages should be taxed for social security so that the shortfall in social security will be covered, the percentage of wages taken from wealthy and poor workers would be fair, and people will be able to continue using social security. The amount of beneficiaries needing support from social security is only rising.
Current Event 3: Social Security Basically this article is trying to help citizens all over the United States to not give into Social Security benefits so quickly. The reason for this statement is once you start to hit the retirement age people immediately want to take out money from their benefits. The problem with doing this irrational idea is that you can potentially be receiving larger payment if you just wait a couple years longer. For example, if you decide to take out money early at the age of 62 your monthly payments will be 25% to 30% smaller than if you wait until full retirement age. On the other hand, full retirement age varies from the ages 66 to 67 for people who are currently in the workforce.
The Social Security Trust Fund thrives off the baby boomers that were born after World War II. Now, these baby boomers are retiring and they will “throw the budget…out of whack” (Schiller 265). When this happens, there will be fewer workers per retiree and a primary source of government will disappear. We should be worried about this because the treasury will not easily be able to pay back the Social Security Trust Fund. As a result of this, Congress would have to raise taxes as well as make cuts in certain programs and as Schiller says, “none of these options is attractive” (Schiller 265).
With falling lottery revenues that pay for the scholarship, the government will have to boost lottery sales, or they will have to find new ways to pay for the scholarship. The scholarship “would be cut $279 million next year.”(Wermers pg1) The current governor Nathan Deal opposes changes in the current benefit plan, but will not support raising or creating a new tax. The lottery currently
The most obvious answer is an increase in taxes and the cutting of extraneous federal spending. Yes, by having universal health care the government will have to budget more strategically and plan another expense into its finances. However, politicians fail to realize that this cost can be overridden by a subtle tax increase. Despite the complaints, most Americans agree that they would be willing to pay more taxes in return for more services such as health care (Universal Access 12). Moreover, we should also keep in mind that Americans today pay some of the lowest taxes in the world, and that developed nations in Europe may spend up to one third of their annual salary in taxes.
This is another reason for the American taxpayer to look down on upon welfare recipients. Our national economic situation is going create a longer list that will to have to go on welfare and it will not get any better if something is not done to fix it. Although some people who defraud the system are caught, too many more people get away with it. There are millions of Americans that use welfare as it is intended, they get off of it and become more productive members of society. It is up to our leaders to do what is best for the entire nation by passing new Welfare Reform legislation that will punish those more harshly and get the financial aid to