- Target:
- U.S. Congress
- Region:
- United States of America
- Website:
- www.californiaalliance.org
Reports of Social Security’s imminent demise have been vastly overstated. Even if no changes are made, Social Security will continue to pay full benefits, on time, until 2040. After that, the system will have a 25 percent shortfall, not empty coffers. In fact, as long as the Social Security payroll tax continues (6.2 percent of wages, paid by both the employer and employee), the system can never go broke. The challenge for Social Security is to ensure that 100 percent of benefit obligations are paid far into the future.
Social Security’s long-range shortfall presents a significant but manageable problem. According to the 2006 report of the Social Security Trustees, the future shortfall is the equivalent of 2.02 percent of wages. That means that if employers and employees each paid a little over 1 percent in additional payroll tax, Social Security would be in great shape for at least the next 75 years! Of course, there are many other solutions to consider other than raising tax rates, but these figures indicate the relatively modest size of the problem.
If nothing is done to solve the problem, however, it will worsen. Waiting until the problem is upon us isn’t an option, because it would mean huge tax burdens for future generations. To avoid a crisis down the road, we need to act soon.
We the undersigned, urge the President’s Fiscal Commission on the Deficit and Members of Congress to protect the Social Insurance Programs upon which millions of Americans, and their families depend.
Cuts to these programs, raising the age of eligibility, taxing benefits, or privatizing these programs will threaten their stability AND harm the beneficiaries who count on them. While we agree that Congress must deal with our national debt, we strongly disagree with the arguments that Social Security and Medicare and Medicaid are to blame.
These programs must be protected and improved. Social Security has a $2.4 trillion reserve. It's long term funding problems can easily be corrected by lifting the cap on earned income that is taxed and by dedicating a portion of the estate tax to the Trust Fund. Medicare and Medicaid costs need to be contained as part of our effort to contain our country’s overall health care costs.
We should be looking at restricting insurance company profits and closing corporate loopholes so that Wall Street pays their fair share. We urge you to oppose efforts to cut or privatize our future, or the future of generations to come.
You can further help this campaign by sponsoring it
The Saving Social Security for Future Generations petition to U.S. Congress was written by Chuck Walker Sr and is in the category Politics at GoPetition.