Issue Position: Social Security

Issue Position

Current beneficiaries must continue to receive their benefits, without change, but those who have yet to reach full retirement (67) will be part of the shared sacrifice. The normal retirement age is rising as seniors live longer, and revenues are failing to keep pace with benefits.

Besides being a retirement program, Social Security is a social welfare and insurance program that funds a myriad of items, from assistance to needy families to unemployment benefits. If we cut Social Security in a way that generates short-term savings rather than prolonging its lifespan, the American people will be subject to a gross injustice.

The Simpson-Bowles Commission has some useful proposals. By making the benefit payout more progressive, the program becomes more efficient and prolongs its lifespan. Increasing the lowest bracket to $15,000 grants more individuals access to 90 percent of their average lifetime income. The other higher brackets would receive progressively less. Long term, low-income people garner more assistance while those with larger incomes receive lower benefits. This may seem unfair but those on the higher end of the scale generally have other retirement savings such as, 401Ks, pensions, and real estate. Also, increasing the cap on payroll taxes from the proposed $168,000 in 2020 to $190,000 would introduce more revenue into the trust. Increased taxable income equals greater benefits for Social Security as a whole.

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