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

    Oct 9In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards.
    Oct 15This webinar presents the requirements of AU-C 600, Audits of Group Financial Statements (Including the Work of Component Auditors).
    Oct 21Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience’s communication style.
    Oct 23Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.