The Social Security's Board of Trustees, which is a bipartisan panel with six members overseeing the financial transactions being carried out by the Social Security Trust Funds Administration, released their Trustees Report for the year 2007 last Monday. This reinforced the predictions that the Social Security can no long pay in full the promised benefits to its future generations largely due to the changing demographics of the country.
Los Angeles, CA -- (ReleaseWire) -- 09/05/2007 -- According to U.S. Representative Ron Lewis (KY-02) of the Social Security's Ways and Means Subcommittee: “This report reminds us of why Social Security reform and overall entitlement reform is so important.
Moreover, he said, "the facts of this report are undeniable. Millions of baby boomers are nearing retirement while the costs necessary to sustain Social Security and Medicare are growing exponentially. This report should refocus our concern and reinvigorate our efforts to address the serious challenges these programs face.”
According to the SS Trustees' Report, the tax revenue on Social Security will start to fall short to provide for benefit costs starting in the year 2017. Furthermore, by the year 2041, the revenues intended for the trust fund will become exhausted. This means that the Social Security would only be sufficient in financing about 74% of its promised benefits.
According to the Trustees report, they have set a projection of 27% cut on the SS benefits. If not, then the payroll tax need to be increased by at least 50% in order for the Social Security to pay the full benefits, as promised.
Lewis said that the Social Security's issue is a neither a Republican nor a Democrat issue. It needs to be an issue concerning every American. He also issued a challenge that they must not leave such non-reform choices like huge tax increases, massive benefit cuts and enormous deficits to the future generations.
Recently, Lewis initiated the Social Security Guarantee Plus Act, a legislation that would keep the safety net around Social Security and its promised benefits intact. The Act contains a Guarantee Plus plan which has three fundamental principles:
1. All workers must be treated fairly
2. Individuals must own and have control over their retirement funds
3. Social Security benefits is to be guaranteed fully for all Americans throughout the next 75 years and further without tax increases, benefits decrease and retirement age raise
He also challenged the members of Congress to set aside partisanship in their conduct of politics and "do what’s best for today’s seniors and tomorrow’s retirees. Recent history shows that comprehensive reform is possible. Congress needs to work together to explore every possible option to restore confidence in Social Security and ensure the solvency of our most important entitlement programs.”
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