What my US Senator said about improving Social Security

[Omaha Steve]

January 25, 2023

Dear Steve,

Thank you for contacting me about Social Security. I appreciate receiving your comments.

I do not support making changes to the Social Security program for current beneficiaries or those nearing retirement age. As you know, Social Security operates on a "pay-as-you-go" basis. The payroll taxes paid in by current workers are used to pay out benefits for current beneficiaries, with any excess revenues added to Social Security's trust funds.

Changes in demographics are straining Social Security's long-time financing structure. With the retirement of the Baby Boom generation, there will be fewer workers supporting more retirees. When Social Security was first created in 1935, 42 workers supported each retiree. Today, just three workers support each retiree. Furthermore, because of advancements in medicine and a higher quality of life, Americans are living longer. Life expectancy in the United States has increased by 15 years since the creation of Social Security.

Since 2010, Social Security expenditures to pay retiree and disability benefits have exceeded Social Security revenues collected through payroll taxes. According to projections from Social Security's Chief Actuary, Social Security's trust funds will go bankrupt in 2035. Unless the program is reformed, beneficiaries will see a 25 percent cut in benefits just twenty years from now.

Like you, I recognize the importance of providing quality benefits to those who have earned them. I am committed to working with my colleagues in Congress to find a long-term solution to put Social Security on a sustainable path without affecting current retirees or those nearing retirement. As the 118th Congress continues to debate how to put the Social Security program on a strong foothold for the future, rest assured that I will keep your views in mind.

Thank you again for contacting me. If you have additional questions or concerns, please do not hesitate to reach out to my office or visit my website: www.fischer.senate.gov.

Sincerely,

Signature

Deb Fischer

United States Senator

[Celerity]

1. More 'fuck the younger Americans' divisive shitbaggery from a RW piece of shit.

[dchill]

2. Not hard to spot. Deb thinks Deb is a smart influencer.

[brush]

3. Guess it hasn't gotten to her that raising ceiling on incomes

level deductions would solve the problem.

[progree]

4. Getting rid of the cap will go a long way to solving the problem, but it's not quite enough.

Social Security: Raising or Eliminating the Taxable Earnings Base, Congressional Research Service, Updated December 22, 2021,
https://sgp.fas.org/crs/misc/RL32896.pdf
Social Security taxes are levied on covered earnings up to a maximum level set each year. In 2022, this maximum—formally called the contribution and benefit base, and commonly referred to as the taxable earnings base or the taxable maximum—is $147,000.

... If no credits to benefits are provided for earnings above the current taxable earnings base (i.e., earnings above the current taxable earnings base do not count toward benefits),38 the increased revenue would eliminate 73% of the projected shortfall and the program would have a projected shortfall equal to about 0.96% of taxable payroll. Under this scenario, the payroll tax rate would need to be increased from 12.40% to about 13.36% or other policy changes would have to be made for the system to be solvent for the next 75 years. However, the traditional link between the level of wages that is taxed and the level of wages that counts toward benefits would be broken.

... If all wages counted toward benefits as they are now, the trust fund would be depleted in 2054; 57% of the projected financial shortfall in the Social Security program would be eliminated. To achieve solvency for the full 75-year projection period, the option would require an increase of about 1.54% in total payroll tax rate (from 12.40% to 13.94%) or other policy changes would have to be made to cover the shortfall.

[Omaha Steve]

5. kick