October 23, 2021

We'll keep kicking the can down the road until an automatic cut of 25% is about to happen. Obama

Obama tried to address this and was bashed by Republicans and Dems.

People think all they have to do is increase tax on incomes above the current cap, except that isn't going to happen because that roughly 12 percentage point tax increase is needed for other things.

We better pra that GOPers are not in charge when it gets closer.


"CBO projects a Social Security deficit of $120 billion this year that will steadily grow to $384 billion by 2030. Two years later, the trust fund will be fully depleted. If we do not act soon, the Social Security Administration will not have the resources or authority to pay full benefits, leading to an immediate 25 percent benefit cut. Such an outcome would be a crisis for most of the 80 million Americans who will be receiving Social Security in that year."

"This information is disturbing, but not surprising. Had we heeded earlier calls by Presidents Clinton, Bush and Obama, we could have phased in tax and benefit changes gradually to minimize the disruption to people’s lives. Instead, Social Security became increasingly polarized and both parties became less honest about the implications. Too many Republicans pinned their hopes on an ill-conceived plan to convert Social Security into a nationwide 401(k) style system. Democrats have been content to minimize the scope of the problem, even calling for benefit increases despite not having a plan to pay for those benefits already promised.

"In a world of combatting narratives and alternative facts, it is worth remembering that mathematics does not distort or lie. And the mathematics of Social Security are clear: benefits are at risk. And the longer we wait to face this, the more disruptive those changes will be.

"If we wait until the trust fund runs dry, then we will be faced with a mix of ugly choices. We could immediately cut benefits for 80 million recipients by 25 percent. We could raise payroll tax rates for 180 million workers from 12.4 percent to about 16.4 percent. In either case, further spending cuts or tax increases would be required going forward. Neither of these options or the others that could close the funding gap are economically attractive, let alone politically palatable. . . . . ."

https://thehill.com/opinion/finance/555972-the-time-is-now-for-action-on-social-security