Social Security - Big changes

The next big government program I want to talk about is Social Security. Notice the capital 'S'. This indicates an 'important' program. It takes in and gives out a huge amount of money yearly. It has grown out of control and needs to be scaled back. And no, I will not promote throwing widows and orphans out on the street.

First, the Social Security (SS) tax rate needs to be increased. Not sure how much, perhaps about .5% every two years for the next 15 years. We simply need more money in SS to cover those who are receiving benefits.

Next, the never mentioned means test. Here is my proposal: right now, based on your total income some of your SS benefits can be taxed, up to 85% of them. This needs to continue, with a higher breakpoint, say $100K in total income, you pay taxes on 100% of your SS income. Then we need to extend this. You would continue to pay tax on 100% of SS income, but that income would be reduced by percentages as your total income increases. At a point of say... $250000, your SS would be ended. If your income were to be cut for whatever reason, you could reapply to start receiving some or all of your benefits again.

I would also raise the earnings limit for payroll taxes back to its 20-year average level. And all government workers, federal, state and local would be required to pay into SS.

These changes would result in enough money to pay benefits to those who really need them. Those who don't, will make do without them.

Oh and one more change. The SS Trust fund will be left alone, completely. No current or future federal government will be able to use its surpluses, on paper or in reality, to offset deficit spending or to make their budgets look better. 

Barbara

(Some of the information in this post was gathered from this link.)