Debt Impasse Or Not, Social Security Reform Is Coming - MSNBC

[WillyT]

Debt impasse or not, Social Security reform is coming
Here's how proposals would change your retirement benefits
By John W. Schoen -Senior Producer - msnbc.com
updated 2 hours 36 minutes ago

<snip>

No matter what plan emerges from the debt talks in Washington, future Social Security benefits will be trimmed back. As Congress and the White House continue their dysfunctional dance toward financial Armageddon, the elusive, $4 trillion Grand Plan that would include Social Security and Medicare reform has fallen off the table.

But in the early stages of the budget battle, a series of proposals surfaced that provide clues to what broad reform of Social Security might look like. There’s widespread agreement that the program needs fixing. When first created in 1935, the earliest retirement age was 65, a year older than the average life expectancy. Today, with the average life expectancy at 79, beneficiaries can begin collecting at 62 and might well live for decades into retirement.

Meanwhile, the base of support from workers paying into the system has shrunk dramatically. In 1950, there were 16 active workers paying for every retiree. Today the ratio is three to one, according to the bipartisan National Committee on Fiscal Responsibility and Reform, a committee appointed by President Barack Obama and chaired by former Sens. Alan Simpson and Erskine Bowles to come up with a plan to cut the budget deficit.

With more money flowing out and less money flowing in, and the baby boom generation hitting retirement age in force, the Social Security trust fund is expected begin shrinking by 2015. By 2037, the fund is projected to run out of cash, which means it could only pay out as much as it takes in. That would force immediate benefit cuts of about 25 percent if no changes were made before then.

Unless the program can be made to pay for itself, Congress would have to appropriate more than $13 trillion over the next 75 years to make up the shortfall, according to the Brookings Institution.

<snip>

More: http://www.msnbc.msn.com/id/43912701/ns/business-eye_on_the_economy/

:evilfrown:

:kick:

[Wilms]

1. Just to note, there's been at least one unrec of this thread.

Think about that.

[WillyT]

2. Oh... They've Been Unrerccing The Posters For Some Time Now..

As opposed to unreccing the post itself.

:shrug:

:hi:

[roguevalley]

7. it will come because Obama won't defend it. the poor, they are so

inconvenient.

[NNN0LHI]

3. Meanwhile, the base of support from workers paying into the system has shrunk dramatically

Yep, the people manufacturing all of our imported stuff don't contribute to SS or Medicare.

Big surprise there, huh?

Don

[indepat]

14. And it would be unconscionable to eliminate to cap on social security so

the likes of the hedge fund managers who pay a 15% income tax rate on their beau-coup millions in earned income were privileged with paying more into the social security trust fund. No, that would be unfair, if not inhumane. :patriot:

[eridani]

4. More money is SUPPOSED to be flowing out, you stupid fucking shits!!

That pile of money is the prepayment for baby boomer social security.

[MannyGoldstein]

6. So what! Other than facts, you got NUTHIN! nt

[MannyGoldstein]

5. This is all bullshit - Social Security was restructured to deal with this in 1983

These are huge lies promulgated by those trying to steal the Social Security trust Fund:

http://www.handsoffss.org/now-that-people-live-longer-than-we-used-to-will-that-cause-social-security-to-go-bankrupt.html">But isn’t it true that people now live longer, and so retirees will draw benefits for more years? Won’t that cause a problem?

http://www.handsoffss.org/when-the-baby-boomers-retire-will-too-few-people-be-paying-into-social-security.html">But isn’t it true that, in the future, there will be fewer people paying in to Social Security for each one drawing benefits? Won’t that cause a problem?

[WillyT]

8. Yeah... But They Have To Start Laying The Narrative (Propaganda) Now...

I just post 'em... you decide.

:shrug:

:hi:

[kenny blankenship]

9. Dear MSNBC : Why are you call cheating and theft "reform"?

Oh right, that's what "reform" means these days. Vide, the Health Care Reform.

Remind us, please, not to ask for any reforms until AFTER the revolution. Politicians in Washington, Democrat as well as Republican, hear the cry for "Reform!" and start looking around for a corporation or a cartel as patron to sell their constituencies to.

[DocMac]

10. The Brookings Institution???

Well, that explains it then.

[Skink]

11. In order to strengthen social security we should start taxing investment income.

there are less workers now but more money than ever is being made in this country. Transaction tax or perhaps a tax added to capitol gains would be a good start.

[TBF]

12. In order to "strengthen" social security we should also cut defense spending

and stop raiding the kitty.

[FreakinDJ]

13. just raise the cap