Social Security Crisis

Research Paper # 69023

Economics > National
Economics > Taxation
Political Science > Fiscal Policy (economy)

A description of the social security program in the United States and discussion on the problems related with the stability of the program in the future and the options available to save this program.

1,867 words () | 15 sources | MLA | 2006 United States

Paper Summary:

This paper discusses the problems of social security in the United States. As the population of retirees becomes older and the payroll providers become smaller, the United States faces huge deficits as a result of the social security program. While the future of social security is bleak if left as is, the program can be saved if some action is taken at present. It looks at how action such as privatization, raising the age of retirement and reducing the costs of the social security plan can help salvage this critical program for the retired population.

From the Paper:

"The first step to any plan that can save Social Security has to do with raising the revenues that Social Security takes in so that there will always be enough for future generations. Robert M. Ball, the former Social Security Commissioner, has proposed that in order to raise revenue we should "gradually raise the cap on earnings covered by Social Security so that once again 90 percent of all such earnings would be taxed and counted for benefits." (PA2) (http://www.tcf.org) According to Ball, this can be achieved by 2045 and would not be a drastic plan for "this isn't a new tax" he notes. "It simply restores the policy already set by Congress so it should attract bi partisan support." (http://www.aarp.org) What Ball is referring to is that in 1983 Congress agreed on a goal of taxing 90 percent of all wages in covered employment. "