Social Security

Even though social security is generally a widely accepted program by the public, several problems are associated with this program. “Social security, the nation’s largest, costliest, and most successful domestic program, has reached a critical point in its development. As its creators anticipated, nearly every wage earner now pays taxes into the system. In principle, all citizens may be eligible for entitlements at some point in their lives. Yet, sen

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If workers making more than $62,700 annually were taxed 6.

Between 1946 and 1964, people who had postponed having children in the difficult Great Depression years and during World War II began to add to or start families. The benefits that Social Security, paying a flat tax of 6. Under this proposal, all retirees would be guaranteed an annual benefit (about $5,000 in 1996). Of course, Low-income workers have less to invest so would receive less than higher-income workers do even if they made the same investment decisions. Remember in looking at the calculations being made that Social Security is not a “piggy bank” that

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employees put money into and then take out of when they retire. 4 years, while the maximum-wage earner would regain his or her tax contribution in 8. If so, the Trust Fund would produce more investment income for Social Security and help to reduce the projected shortfall. Rather than provide only a low guaranteed payment, it would reduce current benefit levels significantly for most workers whole maintaining some connection between what workers earned and what retirees receive. “If I put a specific plan on the table now I will undermine and weaken the debate, not strengthen it,” he said. (Congressional Research Service Report, Pg 9)

It is unlikely then that the program can sustain its relatively high levels of returns on contributions. Looking back, it seems as though the Social Security system reaches a state crises in which the future predictions leave this program in a state of demise. Better diet, less smoking, more exercise, and advances in medicine are contributing to longevity, which is projected to increase during the twenty-first century. Adding three years to the wage history that is taken into account when formulating a retiree’s benefits, which would better represent a typical worker’s career span, would count a worker’s earlier, lower-paid employment years and thereby reduce benefits. Then as now, advocates of raising the age for Social Security pointed the fact that Americans are living longer than before.

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Approximate Word count = 3180
Approximate Pages = 13 (250 words per page double spaced)

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