The Social Security Trustees Report

by Dale Coberly

The Social Security Trustees Report

is out.  SS now in “short term actuarial insolvency”  Much (lies) will be made of this.  The Report does not lie,  but it does obscure the fact that a 2% increase in the payroll tax will still solve the problem.  the one tenth percent per year gradual approach will now need to be a little bit higher…  increasing each year we delay, but at the end of the day no higher than the 2%.
The biggest reason for the projected “insolvency” now has nothing to do with SS itself,  but predicted increase in employers shifting pay to non taxable health care benefits.
I may be able to write more about this but not very motivated since no one seems to listen.
Also it is getting harder for me to find the energy and correct the typos.
2% is the cost to workers.  employers pay another 2%.  people who like pointless arguments will argue this is “really” a 4% increase.
doesn’t matter.  the workers will only “see” 2%,  and even a 4% increase is cheap for what it buys.

Comments (34) | |