A new Washington Post-ABC News Poll shows that 81% of Americans believe that Social Security is headed for a crisis and 1% believe that it is already in crisis. 66% believe that major changes are needed. The most popular solution for this "crisis" is removing the cap on earnings covered by FICA. In fact, that is the only solution supported by more than 50% of those polled.
"removing the cap off earnings covered by FICA".
ReplyDeleteIf that's the case,democrats should have been re-elected.
Mr hall you spelled off wrong,if i'm not mistaken.
HUH? Sorry, but I do not understand what, if anything, you are trying to say here.
ReplyDeleteRaising the cap would make only a slight dent in the underfunding problem. A change in the amount paid in and/or a change in the retirement age are the only way to fix the system. That has been the case for decades now. The longer the Administration and Congress delays facing the problem, the more drastic the increases will have to be.
ReplyDeleteHumbug. Leave the estimating work to the actuaries.
ReplyDeleteThe trust fund does not set aside assets. When the funds are tapped, the beneficiaries are paid just like any other expenses - out of current revenues and debt.
ReplyDeleteUnlike a real insurance fund, in which reserves are liquidated to pay claims, here we have to raise new money to pay benefits.
It's the same process with or without a trust fund.
If the government can't figure a way to invest the surplus FICA dollars, rather than to spend them on current government expenses, it needs to get out of the insurance/retirement business.
Making the numbers higher in the trust fund simply provides the opportunity to increase the debt held by the public.
Don Levit
Humbug -
ReplyDeleteI hate to confuse you with the facts, but the post about the limited impact of raising the cap is based on numerous studies.
Really? Cite them.
ReplyDelete