The White House has created a specialized commission to address the
social security program, which faces challenges in maintaining long-term
financial sustainability. Observers are trying to judge how the panel
will try to save social security and making their own recommendations
for how to go about it. With many Americans living longer lives, the
retirement age is coming under special scrutiny. Here's what people have
to say.
- 5 Most Likely Changes The Wall Street Journal's Laura Meckler previews
three cost-side cuts: "In addition to raising the retirement age, which
is now set to reach age 67 in 2027, specific cuts under consideration
include lowering benefits for wealthier retires and trimming annual
cost-of-living increases, perhaps only for wealthier retirees, people
familiar with the talks said." And two revenue-side increases: "On the
tax side, the leading idea is to increase the share of earned income
that is subject to Social Security taxes, officials said. Under current
law, income beyond $106,000 is exempt. Another idea is to increase the
tax rate itself, said a Democrat on the commission."
- Raising Retirement Age Political Suicide for Dems Liberal blogger Duncan "Atrios" Black fumes,
"Republicans don't need a 'win' but Dems do and Republicans won't
support any tax increases except maybe regressive ones, there's a good
chance that come December that they will come out with a 'compromise'
which will include raising the Social Security retirement age. Why Dems
think a political winner will be destroying their one remaining brand,
basically the most popular thing the government does, and opening
themselves up for attack ads stating, truthfully, 'Congressman X voted
to raise your retirement age...' I do not know." He later adds, "We should be talking about lowering the Social Security retirement age, not increasing it."
- Facing Tough Political Compromises The Wall Street Journal's Laura Meckler reports,
"The panel is looking for a mix of ideas that could win support from
both parties, including concessions from liberals who traditionally
oppose benefit cuts and from Republicans who generally oppose higher
taxes. ... Even before the commission settles on a plan, many liberals
are vowing to block any cut in retirement benefits. But the White House
and the powerful senior group AARP appear open to a deal.Republicans on
the commission have mostly held their fire."
- Shift Some Benefits from Wealthy to Poor The Atlantic's Derek Thompson explains,
"one of the most popular ideas for reforming Social Security ... would
involve making benefits more progressive by writing smaller checks to
wealthier retirees. ... The richest 20 percent doesn't rely on Social
Security benefits for their income nearly as much as the bottom 50
percent. The wealthier are healthier, they earn more and they save more
for retirement. That's one reason why conservatives and liberals agree
it's reasonable to cut their benefits to preserve the program. ... The
upshot is that poorer workers get a higher percent of their wages, and
richer workers get a lower percent. The payout should be progressive,
because middle-class workers pay Social Security on most of their
income, and upper-class workers don't."
-
AARP Finally Receptive to Cuts Reason's Peter Suderman notes,
"The AARP, the influential seniors’ lobby that one might expect to be
the biggest single interest-group barrier to any such cuts, is now
saying that it may be open to a deal that reduces benefits. ... The most
likely explanation for their outburst of
openness is that they want to make sure that they’re not left out
of the debate. And that means creating the perception that they’re
willing to bargain, not stonewall."
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