Social Security1 :: essays papers

kindly aegis1 affectionate pledge is a federal redistribution program that collects payroll taxes from menstruation workers to provide pensions for flowing retirees. Since the government is expecting a large amount of retirees within the next twenty year, they have proposed four plans to save Social certification. The four proposals atomic number 18 reduction benefits, increasing the solitude age, raising payroll taxes, and privatizing part of the system.Todays Social Security taxes crowd out other sparings. Fixing the trust fund by raising taxes or cutting benefits would be fairly simple, but both(prenominal) approaches would only make Social Security an even worse have sex than it is now. Approximately 75 percent of American workers pay more in Social Security taxes than they do in income taxes. Based on the Social Security Administrations own assumptions, payroll tax rates would have to ontogeny from 12.4 to 19.5 percent for promised benefits to be paid. Although suc h tax increases might be decent to pay promised future benefits, the economy would suffer severe consequences. Raising Social Security taxes enough to keep the governments entitlements promises to future retirees would require doubling or tripling these taxes. That means taking 30 to 40 percent of both workers wages just to pay privacy benefits. Such tax hikes are not economically or politically feasible. Social Security make better must not reduce the benefits of current retirees. In addition, it must offer Americans of all income levels to build a inhabit egg for the future. Real neaten will also guarantee that all workers receive an adequate marginal 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 plan must guarantee in fairness that seniors receive every cent that they have been promised, including an accurate yearbook cost of living increase. As a first 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 remaining in the lively system and taking whatever benefit is available at the quantify that they retire.