Goverment

Ashley Trosin
American Government
4/21/12
Social Security Reform

By the mid-2020s, in addition to the 12.4% Social Security payroll levy, nonexempt workers would need to finance another $200 billion a year (in 2010) in Trust Fund bond redemptions exclusively to keep full hits flowing. (FDCH Congressional Testimonial) Many people be worried that by the time they need to retire, the loving certification system pass on be depleted. Such a depend adapted system cannot be solelyowed to fail. All lucres should be taxed for brotherly auspices so that the deficit in social security will be covered, the percentage of wages taken from ladened and poor workers would be fair, and people will be able to continue using social security.

The amount of beneficiaries needing wear from social security is only rising. It is obvious that a change will have to be made in order to support this system. Lifting the wage cap would almost entirely solve this problem. agree to Stephen Goss, the SSAs chief actuary, lifting the cap while giving commensurate benefit hikes to high-income taxpayers once they retire would cover 93% of the SSAs projected shortf each in Social Security revenues over the next 75 years. (Miller, John) At that rate, social security would not only be saved but would create a long-term surplus.





Lifting the wage cap would create a fair system for all(prenominal) wage earners. Higher wage earners would not be impact too harshly by this change. Roughly 16% of all beneficiaries would see their lifetime tax payments extend by little than 10%. However, 3% of all beneficiaries would have their tax payments increase by 10% to 19%, and 2% would have tax increases of 20% or more. (Mulvey, Janemarie) Before now, the wage cap did not create such a large gap in taxed wages. Two decades ago, the cap exempted only 10 percent of all wages. But as the growth in wages at the top has outstripped growth at lower levels, the amount of gelt exempt from Social Security taxes has grown to 15...If you want to fit a full essay, order it on our website: Orderessay



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