Social Security reform takes one step forward

The Treasury is studying reform methods to make the Social Security system sound. In the first of a series of Issue Briefs, Treasury looks at how Social Security affects current and future individuals and generations and explains why reform can be fairer to future generations the sooner it is implemented.

In the Issue Brief, it is disclosed that Social Security can be made sound in a number of different ways:

  • Raise the payroll tax rate immediately by 3.5 percent.

  • Wait until 2041 (the year the system is expected to be depleted) and raise the payroll tax rate by 5.8 percent.

  • Cut retiree benefits by 20.4 percent immediately.

  • Wait until 2041 and cut benefits by 30.4 percent.

  • Encourage higher fertility and/or immigration.

    Although the Social Security system was not designed to be the only means of revenue for our nation's retirees, the reality is that for many people today, there is nothing else. The original system promised more to its participants than they paid in, and going back on that promise is not considered to be a viable alternative.

    The bottom line, presented in the report, is that a decision needs to be made, and soon, so that the least amount of harm is done to current and future Social Security recipients.

    You can read the entire Issue Brief No. 1. More Issue Briefs will follow.

    You may like these other stories...

    For the first time since 2006, more than 50 percent of CFOs believe the US economy will show signs of improvement over a six-month span rather than remain the same or worsen, according to a new study from Chicago-based...
    By Jason Bramwell, Staff Writer CPAs in New Jersey, New York, and Pennsylvania believe economic conditions in the United States will likely be the same one year from now, and while they predict higher business revenues...
    By Jason Bramwell Managers in accounting, finance, and IT are cautiously optimistic about their hiring plans for the fourth quarter of 2013, according to a new hiring outlook survey from staffing firm Brilliant. ...

    Already a member? log in here.

    Upcoming CPE Webinars

    Aug 21
    Meet budgets and client expectations using project management skills geared toward the unique challenges faced by CPAs. Kristen Rampe will share how knowing the keys to structuring and executing a successful project can make the difference between success and repeated failures.
    Aug 26
    This webcast will include discussions of recently issued, commonly-applicable Accounting Standards Updates for non-public, non-governmental entities.
    Aug 28
    Excel spreadsheets are often akin to the American Wild West, where users can input anything they want into any worksheet cell. Excel's Data Validation feature allows you to restrict user inputs to selected choices, but there are many nuances to the feature that often trip users up.
    Sep 9
    In this session we'll discuss the types of technologies and their uses in a small accounting firm office.