Congressman John Larson, the Chairman of the House Social Security Subcommittee, is pushing the Social Security 2100 Act which would increase benefits by about 2%, change the Cost of Living Adjustment (COLA) formula to make it more favorable to those receiving benefits, set a minimum benefit level and cut taxes for some low income people. It would also increase taxes for most workers, particularly for those with wages over $400,000 a year. The net result would be to put Social Security into low term actuarial balance.
John Biggs of the American Enterprise Institute, a right wing "think tank" has released an argument against any increase in Social Security benefits on the grounds that retirees are better off now than in the past, largely because of private pension plans. I think there's more than a little sleight of hand in his arguments on defined contribution plans. He uses the increase in defined contribution plan assets as proof that there is no "retirement crisis" even though there is no way around the fact that the increase in defined contribution plans has happened because of the decline in defined benefit plans which afford far greater retirement security than defined contribution plans. Still, he certainly marshals facts in support of the thesis that most retirees are better off today than they were in the past. I'm just not sure that's going to continue as defined benefit plans continue their decline and more workers shift into the "gig economy." I know that's not the case now for lower income workers.
4 comments:
I wish my landlord and the grocery store were only raising prices according to the tiny percentages the Soc Sec has been going up!
This makes me wonder how many millionaire's and billionaire's are collecting SS Retirement or even SSDI?
Don't get me wrong fair is fair, but really.....
Also, the COLA formula they use today is by no means the same formula as was used in the 80's.
Just some thoughts...
Also, if they want to really help people, perhaps they can make the "working under SGA' a little less scary! Word on the street is that if you attempt to work a few hours a week, SS will size on that to find anyway and every-way to stop your benefits. It's really scary out there, when you can't pay your bills and are told you can work a little and then you lose everything- all your benefits because you believed in a fair system.
What world are they living in? Lots of people don't have a viable pension plan. Here in Mississippi, only people drawing from the state have good pension income for the most part. We have to raise or remove the cap on income taxed for social security purposes.
Pass the 2100 act now
Post a Comment