Get A Well-Tailored Safety Net: The Only Fair and Sensible Way PDF

By Jed Graham

ISBN-10: 0313381690

ISBN-13: 9780313381690

ISBN-10: 0313381704

ISBN-13: 9780313381706

This fascinating publication introduces the 1st Social safeguard reform idea adapted to satisfy the nation's financial demanding situations and deal with an getting older population.

• greater than 50 charts and tables element the controversy over Social safety reform, together with the money advantages retirees might get lower than a number of proposals

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Extra info for A Well-Tailored Safety Net: The Only Fair and Sensible Way to Save Social Security

Sample text

After all, both President Bill Clinton and the first President George Bush raised taxes. But it’s worth remembering that the budget deal that Clinton reached with the Republican-led Congress in 1997 set a goal of balancing the budget by 2002—after Clinton left office. Some of the credit for the budget surpluses of the late 1990s belongs to a windfall of tax revenue from an economy with a 4 percent jobless rate that was supercharged by a roaring stock market and the exploding growth of the Internet.

22 Beyond 2019, even as the rest of the budget is being stretched to the breaking point, Social Security would need ever-larger infusions of cash. By 2020, Social Security’s annual shortfall will exceed $100 billion (in 2009 dollars), and that will grow to $200 billion a year by 2025 and $300 billion by 2032. 2 trillion reality at the expense of those who will be paying taxes, retiring and relying on government services in 2037 and beyond. 2 ‘‘If we don’t insulate the [Social Security] surplus, then we are at least on the verge of committing something that looks to me like a political fraud,’’ cautioned Herman B.

At that point, Social Security would only have enough tax revenue to cover 90 percent of benefits. 16 By 2028, Social Security faces a funding gap of $250 billion and could only afford 80 percent of benefits without taking money from the rest of the budget. 1 The annual cost of fixing Social Security if we start in . . 85% $261 billion Source: Author’s calculations based on Social Security Administration’s cost, revenue, economic and interest rate projections in The 2009 OASDI Trustees Report.

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A Well-Tailored Safety Net: The Only Fair and Sensible Way to Save Social Security by Jed Graham

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