Social Security - A Stitch Not A Sledge Hammer

Social Security's (SS) well will run dry. All possibilities aside SS will need help to remain solvent. It's simply a matter of normal variability in our population's composition. The percentage of the population that works and contributes to SS is in decline. Consider this however? Social Security began in 1935. That's a successful run of 70 years, as of 2005. The main instances of problems are when Congress has attempted to legislate raids on the Social Security funds. According to a recent report on National Public Radio (NPR) a 1 to 2 percent increase in the SS Tax, now, would prevent the problem.

This situation is not new. According to the 1994-95 Advisiory Council on Social Security, "When fiscal problems have been forecast in the past, adjustments have been made to address them." What is new is the myopic and stubborn insistence of one politician (and his political party's platform) to, "Not raise taxes." So now instead of a simple, practical and timely resolution to a problem we all deal with when we increase our savings or 401K deposits to deal with changes in interest rates and inflation that affect our goals, we get to witness a celebrity death-match.

Again the same report urges , "The earlier the necessary adjustments are legislated, the better, because early notification of impending changes gives people time to adjust..." Instead the President and Congress continue (9 years later) to waste our time avoiding the obviously needed adjustment and work on issues that have nothing to do with adjusting the savings in SS. We can continue to debate private accounts and whatever else "may" improve the SS system. But we need a two percent increase in the Social Security Tax now!

By the way, what all the quibbling is over (using myself for an example) is a $3.78 increase per month in my Social Security Tax. I know I'm sure going to appreciate the possible 50% drop in benefits when I retire so the current president can say, "Yes, but I didn't raise taxes!" Won't you?

Ref: http://www.ssa.gov/history/reports/adcouncil/tirs1.html