How Would Democrats and Republicans Fix Social Security?

Discussion in 'Budget & Taxes' started by wgabrie, Jan 31, 2020.

  1. wgabrie

    wgabrie Well-Known Member Past Donor

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    How Would Democrats and Republicans Fix Social Security?
    https://www.fool.com/retirement/2019/01/11/how-would-democrats-and-republicans-fix-social-sec.aspx

    Why can't we implement both plans??? In a bi-partisan plan, we could give a little to each side.

    I was thinking that maybe we can put the Democrats' plan, to help the poor/low-end beneficiaries, to action by chaining it, below a certain stepped benefit amount, to the "Consumer Price Index for the Elderly (CPI-E)."

    Then we use the current "Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W)" for the middling amount of income benefit up to the current tax cap.

    Finally, I think we should raise the tax cap and provide benefits chained to the "The Chained CPI" (The Republican plan) for higher income.

    Also, that leaves the age for retirement and bonus/penalty problems up in the air. But, I don't have a solution to those problems.
     
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  2. Rush_is_Right

    Rush_is_Right Well-Known Member

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    I have a better idea, let me opt out and give me back all the money I put in and then leave me be, I will be just fine.
     
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  3. wgabrie

    wgabrie Well-Known Member Past Donor

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    I don't like that. Social Security isn't just a retirement program, it's also disability insurance as SSDI, and a resource for the poor and elderly through SSI.

    You will be "just fine"??? Perhaps, perhaps not, but better to be safe than sorry.

    So, let's keep the program shall we? And, come up with solutions on how to preserve it.
     
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  4. wgabrie

    wgabrie Well-Known Member Past Donor

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  5. Rush_is_Right

    Rush_is_Right Well-Known Member

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    I don't care if you like it or not. It's my money and I want it.
     
  6. PPark66

    PPark66 Well-Known Member

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    The purpose of the program is to reduce our cost on the back end of a worker’s life span.

    Essentially the me-me-me crowd is arguing for higher taxation whether they realize it or not.

    I’d rather reduce total cost to everyone tackling issues together rather than incur the cost of going it alone later.

    As for “fixing” the system I’d lift the cap and reduce the percentage withheld for everyone. A percentage of income is just that, a percentage of income.
     
  7. SEAL Team V

    SEAL Team V Well-Known Member

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  8. Seth Bullock

    Seth Bullock Well-Known Member Donor

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    I am not in favor of cutting SS benefits or raising the retirement age. These are our parents and grandparents we're talking about.

    In generations past, adult children took care of their elderly parents - often in their own homes. SS and Medicare are a big part of the reason we no longer need to do this.

    I favor raising the taxable income cap or eliminating it altogether and keeping SS as is.

    Younger people need to remember ... This isn't just someone else's social security. This is your Social Security.
     
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  9. Distraff

    Distraff Well-Known Member

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    One plan is we can eliminate the cap for social security because income inequality is so high anyway. We can make social security tied to financial need and give more benefits to the poorer people who need it most. That is a version of what you are proposing. I'm also thinking that we should boost 401K requirements for companies and this will help people retire too. We can give really nice tax breaks to people who are taking care of their parents.
     
    Last edited: Feb 13, 2020
  10. Derideo_Te

    Derideo_Te Well-Known Member

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    Eliminating the income cap is a MUST because there is no reason at all why the wealthy elite should NOT be paying their share of the tax burden. That must apply to ALL EARNINGS including those of Capital Gains IMO.

    Raising the retirement age is tricky and here I would place it on a more graduated scale. People with high incomes tend to earn more, have better healthcare and tend to live longer so raising the retirement age for those earning higher incomes would make sense. What makes no sense is PENALIZING those with lower incomes who tend to live shorter lives. For them the retirement age should be reset to what it was prior to the current retirement age increases. IOW's if you are a low wage earner you get to retire at 65 and if you are a high wage earner your retirement is at 70.

    The next issue is keeping up with inflation and here is my solution. Tie the SS increase into the rising cost of MEDICAL CARE! Yes, I know, that has the GREED OBSESSED clutching their pearls in shock and horror already but let's look at the BENEFITS of going down this route. Retirees should NEVER be in a position between having to choose either food or medications. Guess who ends up subsidizing these retirees when that situation arises? Yup, their families which in turn becomes a DRAIN on their ability to save and invest for their own retirement.

    There is another benefit that is somewhat less apparent but will probably materialize once it sinks in with the GREED OBSESSED. The more the Medical-Industrial-Complex GOUGES the sick and elderly the greater the INCREASES are to Social Security beneficiaries which is turn comes out of the taxes paid by the GREED OBSESSED. In essence they will be PAYING BACK in taxes what they are STEALING with the EXCESSIVE price increases for drugs. Once they figure out that there is a NEGATIVE feedback loop involved they will realize that they are only harming themselves by GOUGING the sick and the elderly with these price increases.

    Yes, my ideas are unlikely to get passed but I am willing to COMPROMISE providing you come up with feasible alternatives to my proposals.
     

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