Our Thoughts

Fixing Social Security

In 2033, payroll taxes will generate only enough revenue to pay about 77% of promised benefits, resulting in a 23% across-the-board cut to beneficiaries if Congress fails to act. In a recent article in Investment News, Mary Beth Franklin outlined a proposal that would wipe out the shortfall by gradually raising the full retirement age by one year, eliminating the cap on taxable wages, and altering the method of calculating future cost-of-living adjustments. To design her proposal, she used an interactive policymaking simulation tool developed by Voice Of the People.  If you would like to evaluate arguments for and against various policy options and design a package of reforms that fully funds Social Security beyond 2033, please go to www.vop.org.