Social Security Reform

Presidential commissions studying Social Security have long issued strong warnings about future insolvency, when the trust fund begins to spend more than it collects from tax revenue. It is important to remember that if no changes are made to Social Security, the system will run out of money. Today 3.3 workers contribute to Social Security for every person collecting benefits, compared to 16 workers for every beneficiary in 1950. Starting in 2017, Social Security is projected to begin paying out more in benefits than it brings in. Several proposals are currently under discussion to address the issue, including increasing payroll taxes, lifting the tax cap on wages, increasing the retirement age and creating personal retirement accounts. No solution will be easy, but the sooner we act, the less traumatic the transition will be. In the meantime, the best way to preserve Social Security for future generations is to balance the budget, pay down the debt and eliminate wasteful spending.