Today's older workers may see the first cuts to Social Security benefits

[swag]

https://www.marketwatch.com/story/todays-older-workers-may-see-the-first-cuts-to-social-security-benefits-2020-09-03?mod=retirement_twitter&link=sfmw_tw

By Alessandra Malito

Excerpt:

. . . Among the numerous adverse effects of the current crisis is the steep incline in the expected insolvency dates for Social Security and Medicare’s programs, which are expected to run out of money in 11 years compared with the previous projection of 15 years.

The programs rely heavily on payroll taxes. The CBO expects reported receipts from payroll taxes to increase this year despite record levels of unemployment in recent months, but that will change in subsequent years, it said. Lower interest rates and price levels will also reduce the cost of Social Security and other related health care programs, according to the Committee for a Responsible Federal Budget, which did an analysis on CBO’s updated outlook.

Still, Social Security is in trouble. The two trust funds that support the program, which pays out retirement benefits as well as disability and survivorship benefits, are already at risk of running out of money within the next two decades. With the impact of the pandemic under review, the CBO estimates the insolvency date for Social Security Disability Insurance to be 2026, and the Social Security retirement program, known as Old-Age and Survivors Insurance, by 2031. Medicare Hospital Insurance faces insolvency by 2024 if nothing is done to rectify these projections.

“In other words, today’s youngest retirees will face a sharp 25% drop in their benefits when they turn 73,” the CRFB said in an analysis about the CBO’s report. The cut is attributed to less tax revenue, an aging population that will inevitably claim Social Security benefits and trust fund assets that grow at a lower interest rate.

. . . more

[still_one]

1. republicans are hoping for the asteroid to hit on November 3

https://www.cnn.com/2020/08/22/us/asteroid-earth-november-2020-scn-trnd/index.html

[delisen]

2. Absurd. A promise made is a debt unpaid. We wilblprioritize payment of earned benefits

A wealth tax is a strong possibility as are cuts in military spending. Anti-monopoly laws must be enforced.

Our economic system must serve our society, not the other way around.

[mitch96]

11. THIS! The govt gave the wealthy a huge tax brake and they can take it away.

Also I believe payment into the system stops around $150,000 no matter how much you make. Get rid of THAT law. Pmnts to SS up to the total amount you make. That would be a shot in the arm. Even Warren Buffett says he does not pay enough taxes. He paid less that his secretary. And she is not a bizillionaire........
To pay for WW2 the govt taxed up to 92% of income and the US had it's best years following in the '50s.. LOts of ways to pay but the wealthy members of congress and senate won't kill the goose that lays the golden egg...
m

[demosincebirth]

3. Take the cap off the payroll tax.

[raccoon]

6. +1000. Nt

[mitch96]

12. +1 This won't effect the base at all and they would probably agree with this type of tax increase.

and And AND it would not be a big hit in the wallet for the entitled wealthy... YMMV
m

[BlueMTexpat]

4. This is just another of the

MANY reasons why we MUST vote BLUE for ALL federal races in November.

Of course, we should also vote BLUE at EVERY level, IMO.

[Beartracks]

8. Yes - Local, State and Federal!! Vote 'em ALL BLUE! Because...

... when too many Republicans get into office collectively across all levels, they hit some kind of critical mass which they believe lends legitimacy to their stupidest, most arrogant, and most dangerous policies and priorities.

==========

[BlueMTexpat]

9. Exactly this!

[Sherman A1]

10. Precisely

[pansypoo53219]

5. gotta fix the time bomb greenspan set.

eliminate the cap+lower FICA. FICA ALL income.wall street too.

[Igel]

7. A lot of people don't pay FICA.

I don't. I'm in a DCP run by my state.