Recently the hot topic in the news is the deficit reduction debate. The debate tries to link Social Security to the federal deficit. Social Security plays no direct role in the nation’s deficit. It does not depend on income tax revenue.
It’s true that as more people retire and with more people living longer, the surplus funds will run out.
However, there are many ways to strengthen Social Security. We can raise the cap on income subject to FICA taxes or we can completely remove the cap. We can raise the payroll-tax rate on employers and employees. If we believe that Social Security is serving a useful purpose then Congress must do what is needed to satisfy its funding requirements. To this date neither party has provided any solutions.
It is my sincere hope that common sense will prevail and that democrats and republicans will come together and make the necessary changes to Social Security to satisfy its funding requirements for generations to come.