December 27th, 2011|
It is a myth that Social Security is an entitlement, according to Don Samuels in the Summit Daily.
Social Security is a benefit that comes from paying into the system. If you do not pay in, you do not get anything out, Samuels said
Social Security and Medicare are not entitlements. In our checks, most of us have these line items: FICAMED and FICAOASDI, which show that we have taxes allocated to Medicare and to Social Security.
While Medicare is not sound due to rising health costs, Social Security is. The Social Security trust fund is paying out more that it is taking in, but the system is sound, according to Samuels.
He believes that only minor adjustments are needed, such as putting a cap on Social Security taxes for high income earners, using an income tax cut instead of cutting payroll taxes for the middle class, and raising the age for payouts to start.
Samuels also explains that the Bush tax cuts and two wars raided Social Security on the total balance sheet, and that Congress will have to find ways to re-pay these IOUs.
He believes, Congress and the President need to find appropriate legislation to strengthen Medicare and Social Security and not be thwarted by the powerful interest groups involved.
Do you agree with Samuels’ solutions for fixing Social Security?