Tuesday, April 24, 2012

Off topic: How to fix America's Social Security problem

Stress Rises on Social Security, Report Says Program Will Exhaust Reserves Three Years Earlier Than Expected

The Wall Street Journal article says Social Security will exhaust its reserves in 2033, 21 years from now. I have a simple and fair solution. I'm usually against raising taxes for rich pigs (also known as punishing success) but for this I will make an exception. I suggest eliminate the maximum income amount that gets taxed for Social Security. So instead of people with huge incomes not having to pay this tax the last one or more months of the year, let them pay those taxes the entire year like everyone else. Also, these extra taxes they would be paying should not add to their benefits when they retire. It's fair to call this "taking from the rich to give to the poor" and I'm normally against that idea, but I think wealthy people have an obligation to make sure our country's old people at least be able to feed themselves. If they make this change to social security taxes now, then the problem is solved, or at least part way to becoming solved.

From the Wall Street Journal article: Benefits would automatically be cut roughly 25% if the trust funds were exhausted.

I don't like that idea. I don't want a 25% cut in my income when I'm retired.

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