Econ 425 - Jarman 1 Idea's to Save Social Security In the...

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Idea’s to Save Social Security In the recent years it has been brought to our nations attention that there is a growing problem with our social security structure. People are beginning to live longer and in turn our pay-as-you-go social security system is experiencing a strain on our reserves. If the U.S. does not act quickly statistics show that our reserves could begin to experience a deficit by as early as 2015 and completely depleted by 2065.(Cato institute). What I intend to do is present ideas that may divulge solutions to our nations growing problem. I personally believe in a conservative agenda, therefore, I intend to take a responsible fiscal approach to these ideas while keeping in mind the most realistic solutions that can be applied. I will present new ideas as well as add to ideas that are currently being discussed which will ensure a broad spectrum of viable solutions to our Social Security problem. Firstly, I believe one of the simplest steps that can be taken is to increase the wages subject to payroll tax. Increasing the current maximum earned income subject to payroll tax from $90,000 (investorwords.com) to a maximum of $250,000 would suffice in easing the social security deficit. However, this approach raises some questions in regards to fairness. Many believe that it is unfair to those making above $90,000 to make up most of the social security deficit. My answer to this argument is that the only thing this will cause will be a continuous supply of money to the elderly in which they will redistribute back into the economy. People that oppose this idea need to realize that this money will be circulated back in which will allow the economy to continue to flourish and grow. Currently, our Social Security system is considered a regressive tax. A Jarman 1
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regressive tax implies that if someone is making $200,000 or $300,000 or any other amount significantly over $90,000 they are paying significantly less percentage wise in
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Econ 425 - Jarman 1 Idea's to Save Social Security In the...

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