If nothing changes, Social Security faces insolvency before 2037. That was projected when the current recession severely crimped payroll deductions. If just the pension benefits presently scheduled are to be continued, they will consume 51 percent of all federal revenues by 2037, not including Medicare. That date is moving ever closer. Current law requires that when its Trust Fund is depleted, payments cannot exceed monthly income and thus must be reduced proportionately. Total federal taxes would then have to be raised to 26 percent of GDP!—46 percent of all taxable incomes—just for Social Security pensions!—not including health care. The longer a solution is postponed, the more onerous will be its effects. The major impediment to solving this highly emotional issue is the lack of sufficient national income to finance it—and political demagoguery. There are a number of partial solutions: 1. Raise payroll taxes by an additional 1.1 percent to a total of 73 percent for both employer and employee. 2. Tax all wages—not just those under $106,800. 3. Achieve 75 percent lower shortfall if cost of living increases are reduced one percent/year. (But none were paid in 2010-11!) 4. A 75 percent saving would accrue from bumping up the full benefits age from sixty-seven to sixty-eight. Unfunded benefits will decrease sharply if ages are bumped up every few years. In any case, this will definitely become necessary as longevity increases. Cover deficits with a national income set-aside from licensing fees. This only suffices if such fees come from more resources: (e.g., water rights, oil, natural gas and mining exploration leasing fees, wellhead production taxes). You can buy this book now on any of the following websites:
Strategic Book Publishing Rights Agency: http://sbpra.com/HenryMarkant/
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If nothing changes, Social Security faces insolvency before 2037. That was projected when the current recession severely crimped payroll deductions. If just the pension benefits presently scheduled are to be continued, they will consume 51 percent of all federal revenues by 2037, not including Medicare. That date is moving ever closer. Current law requires that when its Trust Fund is depleted, payments cannot exceed monthly income and thus must be reduced proportionately. Total federal taxes would then have to be raised to 26 percent of GDP!—46 percent of all taxable incomes—just for Social Security pensions!—not including health care. The longer a solution is postponed, the more onerous will be its effects. The major impediment to solving this highly emotional issue is the lack of sufficient national income to finance it—and political demagoguery. There are a number of partial solutions:
1. Raise payroll taxes by an additional 1.1 percent to a total of 73 percent for both employer and employee.
2. Tax all wages—not just those under $106,800.
3. Achieve 75 percent lower shortfall if cost of living increases are reduced one percent/year. (But none were paid in 2010-11!)
4. A 75 percent saving would accrue from bumping up the full benefits age from sixty-seven to sixty-eight. Unfunded benefits will decrease sharply if ages are bumped up every few years. In any case, this will definitely become necessary as longevity increases.
Cover deficits with a national income set-aside from licensing fees. This only suffices if such fees come from more resources: (e.g., water rights, oil, natural gas and mining exploration leasing fees, wellhead production taxes).
You can buy this book now on any of the following websites:
Strategic Book Publishing Rights Agency: http://sbpra.com/HenryMarkant/
Amazon Books: http://www.amazon.com/Coming-Crises-Their-Solutions-ebook/dp/B00A2WZ4CK/ref=sr_1_1?s=books&ie=UTF8&qid=1357573018&sr=1-1&keywords=coming+crisis+henry+markant
Barnes and Noble Books: http://www.barnesandnoble.com/w/coming-crises-and-their-solutions-henry-markant/1113749628?ean=2940015922875
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