Patriotic  Moms
  • HOME
  • PURPOSE
  • TEACHING OUR CHILDREN
  • HOLIDAYS
  • SONGS
  • ARCHIVES
  • CONTACT

3 Reasons to Fix Social Security NOW!

7/18/2013

0 Comments

 


By: Danny Huizinga     From: Heritage.org

Picture
In a recent video by ReasonTV, Nick Gillespie describes Social Security as a “fiscal and demographic disaster.” 

Heritage research provides further support that the program “desperately needs to be reformed right now—for at least three reasons”:






1.  Social Security pays more in taxes than it receives in benefits. A recent Heritage graph demonstrates Social Security’s yearly cash-flow deficits. Social Security is already adding to federal deficits and will continue to do so to the tune of nearly $1 trillion over the next decade. This trend is unsustainable and will lead to a financial crisis for the program. According to current Social Security trustees’ projections, if no reforms are made by 2033, benefits will automatically be cut by 23 percent.

2. Social Security is a poor investment. Another Heritage graph shows the dismal return on investment for younger Americans paying Social Security’s taxes. While past and current recipients receive much more from the program than they paid in taxes, younger workers will receive much less. In 1960, workers received $6.39 in benefits for every $1 paid in taxes. In 2010, however, workers received only $0.92 for every $1 paid in taxes. In 2030, that number will fall to $0.84.

3. Social Security hurts younger workers. A recent Pew Research Center poll shows that 54 percent of those ages 18–29 think it is not likely that there will be enough money to provide Social Security and Medicare benefits at their current levels in the future. Younger workers have no control over their mandatory contributions, even though they are uncertain about what (if any) benefits they will receive. Social Security’s payroll tax today is 12.4 percent, and if reforms are not made, that rate could continue to go up. Younger workers would be faced with the burden of paying back the $2.7 trillion owed to the trust fund and the $9.6 trillion in unfunded obligations over the 75-year horizon.

The Heritage Foundation has a plan to address Social Security’s growing problems without burdening younger generations with higher taxes.

There are three reforms that Congress can phase in right away: (1) replace the current cost-of-living adjustment with the more accurate chained Consumer Price Index; (2) raise the early and full-retirement ages gradually and predictably; and (3) focus Social Security benefits on those who need them most.

Moreover, Congress can help all Americans build additional retirement savings in accounts that they own and control, such as with the Automatic IRA.

Danny Huizinga is currently a member of the Young Leaders Program at The Heritage Foundation. For more information on interning at Heritage, please click here.



0 Comments



Leave a Reply.


    Welcome!


    Dates 

    February 2021
    January 2021
    November 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    February 2020
    January 2020
    December 2019
    November 2019
    September 2019
    August 2019
    June 2019
    February 2019
    January 2019
    December 2018
    November 2018
    August 2018
    July 2018
    April 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    September 2016
    July 2016
    June 2016
    May 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013


    Find More by Date
    Click ARCHIVES here
    or on the Main Menu
    above for articles posted before May 2013.


    ​
    Find More by Search
    ​Enter topics of interest in the search box below.

    RSS Feed


Photos used under Creative Commons from uhuru1701, KimCarpenter NJ, Randy Son Of Robert, Kelly Schott, Peter O'Connor aka anemoneprojectors, makelessnoise, BrianKhoury, J. Walker-Yung, Bob Jagendorf, jimbrickett, Belzie, Elvert Barnes, A. Buser, slapjack, okandasan, Elizabeth/Table4Five, cliff1066™, Dave Hosford, Sweet One, Јerry, jonfeinstein, richard winchell, bigbirdz, A. Strakey, Brian Lane Winfield Moore, Fried Dough, isafmedia, Kelly Schott, Upsilon Andromedae, Luigi Crespo Photography, Artondra Hall, Yuya Tamai, AFS-USA Intercultural Programs, jimbrickett, John-Morgan, idlebrat, slgckgc, stan.faryna, cordfish, Wendy Piersall, @cdharrison, DonkeyHotey, Belzie, Elizabeth/Table4Five, terren in Virginia, PBoGS, PBoGS, The-Lane-Team, OakleyOriginals