Congress has many options to protect Social Security

Many Americans worry about Social Security and the future. There is much concern that the system will go bankrupt. What, exactly, is meant by this is often unclear, but it seems to generally suggest that Social Security will not be available to pay benefits, either for retirees or the disabled.

This concern is inaccurate and unfounded. While there are trust funds that supply some of the monetary resources necessary to pay benefits, they only supply a portion of the total the Social Security Administration disburses each month. The problem is that in approximately 18 years if Congress does nothing and those funds are exhausted, benefits will need to be cut.

This is a real concern, especially if you were to be disabled at that time. Because disability benefits are modest, the need to cut 20 percent of the benefit would be disastrous for most beneficiaries. A similar concern exists for many retirees.

There are many ways Congress could respond to this crises. One discussion list 15 options. Some are unpleasant; such as "doing nothing," which Congress has been quite adept at doing.

Others are equally poor choices, such as waiting until 2034 and then executing a bunch of drastic changes, including raising the payroll tax, applying the payroll tax to all levels of income, means testing the indexing of benefits, or some other combination of alternatives.

Congress could choose to act now and using a couple of the options together, they could eliminate any need for harsh action in the next two decades or severe cuts to the program. While it is commonplace to state that there is insufficient political will to solve this issue, the real question that should be asked is given the importance of these two programs for millions of Americans, why is there no political will?

No Comments

Leave a comment
Comment Information
Email Us For a Response

Get Help Today - Email Us

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Crowe & Shanahan

Crowe & Shanahan 500 North Broadway Suite 1500 St. Louis, MO 63102 Toll Free: 877-213-7793 Phone: 314-231-6660 Fax: 314-231-2357 St. Louis Law Office Map