Saving social security
I just read a USA Today article, “Social Security: What can you expect to get based upon age?”. It correctly states that politicians are caught in the unenviable position of either raising Social Security taxes or eventually reducing benefits, neither of which come without making a large portion of their constituents angry. The answer seems very simple to me.
Our federal government has everything it needs to fairly balance both. We know how many people will be drawing Social Security in any given year way into the future. We also know how much money it will take to keep benefits flowing at today’s rate including increases in the cost of living.
So, my proposal would be to maintain the current withholding rate, but flex the upper limit on Social Security withholding to cover the coming year’s anticipated benefits. The upper limit would go up as benefit needs go up, but go down when possible to maintain adequate funding. Like most good compromises, neither side is totally happy, but this formula should seem fair for everyone and keep Social Security solvent forever.