The most liberal Democrats see the 75 year salvation for Social Security in simply removing the payroll cap on taxable income (while leaving the benefit calculation at the capped level). What could be easier, just raise taxes and lower spendable income for all upper middle class Americans? In the process we change Social Security into a senior welfare program and make the next generation even more dependent by lowering its ability to save for retirement.
A reasonable alternative is to slightly modify the cost of living calculation going forward. No benefits are cut. This and future generations share in the changes and federal revenue is increased in the process. The hold harmless provision in the Medicare law still protects the vast majority of beneficiaries from premium increases that exceed the Social Security COLA.
In the coming months the liberal propaganda machine will be gearing up in fear that there may actually be compromise on this issue. Left, right or middle nobody wants to harm seniors or ignore those who depend heavily on Social Security. Nobody wants to destroy Social Security. However, America is about more than seniors. We have a responsibility to all ages and all generations. It is reprehensible in the name of politics (think senior voting block) to further burden the middle class and those aspiring upward mobility with more taxes, especially when there are viable alternatives to spread the burden across generations.
As you listen to the political rhetoric and propaganda from the AARP and groups such as the Center for American Progress, keep the facts in mind and remember this is a Country with obligations to our young and our old.
We seniors had our chance, we have no right to diminish the opportunities of following generations.
From a WSJ article 3-12-13
Democrats, particularly more liberal ones, are worried about two positions Mr. Obama staked out in past budget talks. During the 2011 debate over raising the nation’s borrowing limit, he proposed a switch in the way the government calculates inflation, to a process called “chained CPI,” that would reduce benefits people receive under Social Security.
If adopted, chained CPI likely would be applied to a number of programs and to the tax code, cutting projected deficits by $230 billion over 10 years, the administration has said. A hypothetical Social Security beneficiary who retired at age 62 in 2002 with a monthly benefit of $1,000 would receive $1,309 a month now under the current cost-of-living adjustments, but $1,263 if the chained CPI approach had been in effect.
NOTE: The difference in the monthly benefit after ten years of inflation adjustment is only $46 a month on average.