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Lawmakers suggest Social Security balance fix

On behalf of Jeffrey Rabin of Jeffrey A. Rabin & Associates, Ltd. posted in SSA on Friday, December 6, 2013.

According to the Social Security Board of Trustees, the trust fund for Social Security of approximately $3 trillion, will be used up within the next two decades. That means, it might be difficult for the government to continue paying out Social Security at that point, unless a fix made to make the system more sustainable.

Lawmakers have been debating changes to Social Security for years, and the debate is ongoing. Sen. Elizabeth Warren has proposed an increase in the cap on wages that are taxed for Social Security. Currently, income is taxed for Social Security, up to a certain dollar amount.

This means, top wage-earners might only pay Social Security taxes on a small percentage of their income. If the cap is increased, people who earn more income would see Social Security taxes on a larger portion of their income.

According to a recent report, the total percentage of the nation’s wage earnings that are taxed for Social Security has fallen from 90 percent to 83 percent. Increasing or eliminating the cap on the amount of wages that could be taxed for Social Security could result in a significant increase in the amount of money in the Social Security fund, and might even result in an increase in payments when people take Social Security benefits.

Social Security issues continue to be complex, and will likely continue to be debated in the years to come. Although there is enough money for people to continue to receive payments currently, the future remains uncertain.

Source: DisabilityScoop.com, “More Than 1 in 10 Kids Diagnosed With ADHD,” Shaun Heasley, Nov. 25, 2013

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