HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Main » General Discussion (Forum) » Here's how Congress might...

Mon Oct 7, 2019, 07:17 PM

Here's how Congress might try to fix Social Security this fall

When Rep. Bill Pascrell, Jr., D-N.J., visited a senior living center in Englewood, New Jersey, last week, he had one main focus: Social Security reform.

Speaking to a room full of older Americans, Pascrell painted an urgent picture of what needs to happen in order to shore up the nation's insurance program.

"Social Security is not going to die in the next couple of years," Pascrell said. "But in about 10 years, it's going to have to go into the trust to pay benefits."

Social Security has $2.9 trillion in its reserves. However, with 10,000 baby boomers becoming eligible to collect retirement benefits every day, the system will face challenges in the coming years, Pascrell said.

In 2035, Social Security's combined trust funds will only be able to pay about 80% of promised benefits, according to the Social Security Administration.


-snip-

Some Washington politicians would rather wait until later and then raise the retirement age, he said. Pascrell said he sees a better way: passing a proposed bill called the Social Security 2100 Act.

-snip-

In keeping with its name, the bill aims to extend the solvency of the program into the next century. The measure also aims to give workers who are or who will be receiving benefits a raise that would equal 2% of the average benefit.

To pay for those changes, the bill would raise payroll taxes. That includes what Democrats call modest increases for all workers, increasing the rate to 7.4% of wages from 6.2% between 2020 and 2043. The bill also introduces new levies for those with wages over $400,000. Currently, only wages up to $132,900 are taxed.

-more-

https://www.msn.com/en-us/money/retirement/heres-how-congress-might-try-to-fix-social-security-this-fall/ar-AAIqD6J?li=BBnb7Kz

13 replies, 735 views

Reply to this thread

Back to top Alert abuse

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 13 replies Author Time Post
Reply Here's how Congress might try to fix Social Security this fall (Original post)
Yo_Mama_Been_Loggin Oct 7 OP
PoindexterOglethorpe Oct 7 #1
CurtEastPoint Oct 7 #3
customerserviceguy Oct 7 #6
Yo_Mama_Been_Loggin Oct 7 #4
Voltaire2 Oct 7 #7
DFW Oct 8 #10
Voltaire2 Oct 8 #13
PSPS Oct 7 #2
wasupaloopa Oct 7 #5
GulfCoast66 Oct 8 #8
a kennedy Oct 8 #9
GulfCoast66 Oct 8 #12
DeminPennswoods Oct 8 #11

Response to Yo_Mama_Been_Loggin (Original post)

Mon Oct 7, 2019, 07:20 PM

1. Raise the amount on which SS is paid.

It's that simple.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to PoindexterOglethorpe (Reply #1)

Mon Oct 7, 2019, 07:33 PM

3. Absolutely. Easy fix. Will they do it? Hell, no. No spine.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to CurtEastPoint (Reply #3)

Mon Oct 7, 2019, 08:38 PM

6. I'm already planning

for my benefits to be cut. Hope I'm pleasantly surprised to find out that I'm wrong.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to PoindexterOglethorpe (Reply #1)

Mon Oct 7, 2019, 07:39 PM

4. That's part of the proposal

From the last paragraph I posted,

The bill also introduces new levies for those with wages over $400,000. Currently, only wages up to $132,900 are taxed.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Yo_Mama_Been_Loggin (Reply #4)

Mon Oct 7, 2019, 08:38 PM

7. It's half assed.

Erase the cap, donít raise taxes on low wage workers.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Voltaire2 (Reply #7)

Tue Oct 8, 2019, 05:04 AM

10. Agreed

Raising the rate hurts people making $50,000 a lot more than it will hurt people making $400,000. of course, there are probably ten times as many people making $50,000 as there are people making $400,000, so it might not raise enough to keep things solvent by elimination of the cap alone. However, I think there have to be a LOT of people making bewteen $132,000 and $250,000 that could fill in a lot of the gap, although people making $250,000 in San Francisco or New York City probably live more modestly than people making $132,000 in Nebraska or Missouri.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to DFW (Reply #10)

Tue Oct 8, 2019, 11:45 AM

13. The Republican game plan, as always, is to

put these poison pills into any ss reform. Look they raised your taxes!

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Yo_Mama_Been_Loggin (Original post)

Mon Oct 7, 2019, 07:29 PM

2. Moscow Mitch won't allow a vote in his duma.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Yo_Mama_Been_Loggin (Original post)

Mon Oct 7, 2019, 08:06 PM

5. I do not envy younger workers. I am 73 and retired. I was a SEIU member and

have a defined benefit retirement income.

In the future I think 401Ks will not have much of a monthly payout and Soc Sec could be cut.

This needs to be talked about more and find ways for workers to put away more money.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to wasupaloopa (Reply #5)

Tue Oct 8, 2019, 12:02 AM

8. 401Ks actually can be very good. Usually are. But that is not the problem!

Like you, the wife and I have a very good defined pension along with our SS. Enough to live on well till we die. But both pale compared to our 401K.

But we have no kids and are pretty high wage earners. We could afford to put 10-15% of our already decent wages into our 401k. But few Americans can save that kind of money.

People making 60k combined with kids are not saving much for retirement. They are hardly paying the bills.

We have got to shore up SS and make people who live only on it not live in poverty.



Reply to this post

Back to top Alert abuse Link here Permalink


Response to GulfCoast66 (Reply #8)

Tue Oct 8, 2019, 04:52 AM

9. "We have got to shore up SS and make people who live only on it not live in poverty."

Thatís the reason SS was started.....to keep seniors OUT OF POVERTY.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to a kennedy (Reply #9)

Tue Oct 8, 2019, 08:28 AM

12. Correct. But it no longer does.

Many people living with nothing but SS and Medicare are basically living in poverty.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Yo_Mama_Been_Loggin (Original post)

Tue Oct 8, 2019, 06:12 AM

11. Once again, there is no trust

Money to pay social security benefits comes from the OASDI payments current workers pay. When more money comes in, than goes out, the "excess" money is, by law, invested in US Treasury Bills. Right now, more is coming in than going out, but there is no trust, just funds invested in treasuries. When more money goes out than comes in, the treasury bonds will have to be redeemed. When all the bonds are redeemed, whatever the difference is between income and outgo can be paid from general government revenues.

Reply to this post

Back to top Alert abuse Link here Permalink

Reply to this thread