Commentary: Two experts propose four principles for policymakers and lawmakers to follow to avoid depleting the Social Securty trust fund.
tried — and failed — during George W. Bush’s presidency to get Congress to enact reforms to shore up the program’s finances. There’s been no momentum toward resolving the problem since then.We believe that policymakers and lawmakers need to follow four principles as they consider how to move forward.
The program should be self-funded in the long run so that its annual revenues match its annual expenses. That way the many questions that arise related to trust fund accounting and whether Social Security tax revenues are being used for their intended purposes would be eliminated. The reform burden should be shared across generations. Current retirees can share the burden through a reform that reduces the cost-of-living adjustment. Today’s workers can share the burden through an increase in the cap on income subjected to Social Security taxes so that 90% of total earnings are taxed. Continued gradual increases in the retirement age to keep pace withThe government should make sure that Social Security benefits will be adequate for lower-income retirees for years to come.
Any changes to Social Security should help constrain the future growth of federal spending, given theIt appears that the U.S. — citizens and elected officials included — are deferring serious debate on this urgent matter until the trust fund’s depletion is imminent. That’s unwise. Acting sooner rather than later would leave more options available to gradually resolve the program’s financial shortfalls.
Ending this procrastination would also give the millions of people who rely on Social Security benefits, taxpayers and businesses more time to prepare for any changes required by overdue reforms.
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