Time for a new common sense Social Security contract

Social Security and Medicare are financially unsustainable.  "Saving" them requires some kind of change:  increased taxes, reduced benefits, or some combination of both.  Personally I prefer a reduced benefits approach over increased taxes, though not one that impacts the current recipients of these transfer payments. 
 
As I see it the way to long term stability is to link the date one can start collecting with average life expectancy.  That would make me, born in 1957, eligible for benefits when I reach 69.5 years old.  For someone born today that would push the start of benefits to 80 years old.  Such a change would reduce the effective lifetime benefit while keeping the monthly benefit, indexed to inflation, unchanged.
 
If this change is insufficient to bring both into balance then and only then should we make the necessary tax increases to cover the remaining deficit.
 
  
Advertisements
This entry was posted in News and politics. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s