Social Security1 :: essays papers

genial auspices1 companionable Security is a federal redistribution program that collects extend onroll taxes from authorized workers to provide pensions for current retirees. Since the government is expecting a large amount of retirees indoors the next twenty year, they baffle proposed quadruple plans to save loving Security. The four proposals are reducing benefits, increasing the retirement age, raising payroll taxes, and privatizing segment of the system.Todays Social Security taxes crowd out other savings. Fixing the arrogance fund by raising taxes or cutting benefits would be clean simple, but both approaches would only make Social Security an level off worse deal than it is now. Approximately 75 percent of American workers pay more in Social Security taxes than they do in income taxes. ground on the Social Security Administrations own assumptions, payroll tax rank would have to increase from 12.4 to 19.5 percent for promised benefits to be paid. Although such ta x increases energy be sufficient to pay promised future benefits, the economy would suffer frightful consequences. Raising Social Security taxes enough to keep the governments entitlements promises to future retirees would beg doubling or tripling these taxes. That means taking 30 to 40 percent of every workers wages just to pay retirement benefits. much(prenominal) tax hikes are not economically or politically feasible. Social Security reform mustiness not reduce the benefits of current retirees. In addition, it must allow Americans of all income levels to build a nest crank for the future. Real reform will also guarantee that all workers own an adequate minimum retirement income. The benefits of current retirees must not be reduced. Washington has a moral contract with those who currently receive Social Security retirement benefits, as well as those who are so close to retirement that they have no other options for building a retirement nest egg. Any real reform p lan must guarantee in law that seniors receive every cent that they have been promised, including an accurate annual cost of living increase. As a graduation step to saving Social Security for future generations, Congress should pass a law giving every already retired American a contract that provides a legal guarantee of his or her Social Security retirement benefits. Finally, current workers should have the choice of either joining a Social Security system that includes personal retirement accounts or be in the existing system and taking whatever benefit is easy at the time that they retire.