social security problems-Trump’s Unique Opportunity to Reform Social Security

Social security problems; are they real or just Imaginary

As President Donald Trump is preparing his first budget submission to the Congress, he should consider making Social Security reform a priority.

The future of the Old-Age and Survivors Insurance and disability programs, and their impact on American families, the federal budget, and the economy, are issues too big to ignore. Social Security reform is needed, and ever more urgently.

Heading Toward Insolvency

Social Security is fiscally unsustainable. The primary program under Social Security—the Old-Age and Survivors Insurance Program—has been running cash-flow deficits for the past six years, meaning it has to cash in IOUs from the federal treasury and thereby increase the national debt.

The Social Security trustees project that the trust fund will run dry by 2035, and potentially sooner, according to Congressional Budget Office projections.

Either way, waiting to reform the program should not be an option because the magnitude and gravity of changes necessary to Social Security only grow larger the longer Congress and the president delay reform.

Absent reform, the Social Security trustees predict that benefits would have to be cut by 23 percent across the board when the trust fund runs dry. Without changes to benefits, American workers could be faced with a 33 percent increase in their payroll taxes, putting a serious strain on middle- and lower-income workers. Dailysignal

let’s move past social security problems; watch this very interesting video on time

As President Donald Trump is preparing his first budget submission to the Congress, he should consider making Social Security reform a priority.

Heading Toward Insolvency

The Social Security trustees project that the trust fund will run dry by 2035, and potentially sooner, according to Congressional Budget Office projections. Donnyferguson

While Donald Trump has a general commitment to keep his hands off of Social Security, one of his major economic proposals would leave an indelible impression upon the system that few are discussing.

Trump’s campaign theme focused on tax reductions for middle class Americans. His goal includes removing nearly 75 million households – over 50% – from the income tax rolls. To accomplish his goal his plan creates a zero income tax rate on singles earning less than $25,000 and couples earning less than $50,000.

This plan is great for middle income taxpayers, none more so than seniors who would enjoy significant relief from the taxation of their Social Security benefits. This income faces some of the highest marginal tax rates in the entire tax code.

For a dollar of income, the tax formula can expose a portion of the Social Security benefits to taxes. It is entirely possible that earning a dollar will create a tax based on $1.85 of income. In the worst case, the marginal tax rate is 46 percent.

While current seniors would applaud this economic policy, it would sharply curb the revenue base of the program. Thehill

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