Vote Up
2
Vote Down
Solution

Pre-funding

1,671 Views / Posted by Ed Bradford

Share with Reddit Share with Reddit

Tags
Social Security is a pay as you go system. When started, 17 people supported each retiree. Today, 3 people support each retiree. in 2030 2 people will support each retiree. This is not sustainable even if you rase the cap, increase retirement age, change the starting benefit from wage indexing to CPI or lower the CPI increases. The only thing that can save it is raising tax from 12.4% to 18.6% - which would exactly cover the 3 supporters to 2 supporters of 2030.

Also, the Dec 2010 tax break of lowering the Payroll tax was foolish for Congress and the President to propose. The 50% payroll tax reduction in President Obama's "Jobs Bill" is dumber than foolish. A 50% payroll tax reduction will bring the 2037 Social Security bankruptcy date closer to something like 2024 (50% close to now).

Pre-funding - means the money is reserved and not spent by Government in any way and cannot be spent. In fact, it is physically available or available within 1 week in its entirety. Its liquidity cannot be abrogated by any federal laws.
Supporters: Ed Bradford, Erna Boldt
Opponents: None
Section This issue has not been linked to a statute yet.
Court Cases This issue has not been linked to any court cases yet.
News This issue has not been linked to any news articles yet.
Companies and Organizations This issue has not been linked to any companies or organizations yet.
    No comments have been added yet. Sign in to post a comment.
    Problems Add Add a Problem
    Vote Up
    2
    Vote Down
    Problem Social Security
    I collect
    Space
    Issues Laws Cases Pro Articles Firms Entities
    Issues Laws Cases Pro Articles Firms Entities
     
    PlainSite
    Sign Up
    Need Password Help?