Congress needs to keep Social Security solvent
Pat Williams | Hagadone News Network | UPDATED 11 years, 8 months AGO
Imagine if tomorrow morning’s headline was this: “Four hundred thousand to get one half billion dollar boost in income.” The underlying news story announces that hundreds of thousands of people here in three states of the Northern Rockies whose good earning jobs are behind them will share $500 million each year for the rest of their lives.
One half billion dollars distributed among people in Montana, Wyoming and Idaho, particularly the 15 percent who no longer bring home good salaries, would be one of the greatest bursts of targeted payroll in our history, a boon for spending in our small businesses and a continuing economic shot in the arm for our region. Of course, this vital economic engine already exists — Social Security.
The first monthly Social Security check was cut for $22.54 and delivered to Ida May Fuller in Brattleboro, Vt., 73 years ago. Today’s Americans receive Social Security checks averaging $1,180 per month.
Both critics and supporters of Social Security are justifiably concerned about the financial solvency of the system. Although the retirement fund enjoys by far the largest surplus, $2.7 trillion, of any government trust fund, that money is expected to start being reduced in 2021.
Low employment, the Great Recession which began under President George W. Bush, and increasing life spans have all presented unanticipated difficulties for the fund. However, the worry about future fund shortages has happened several times during the past half century, and each time was easily repaired by adjusting benefits for future retirees or increasing the payroll tax known as FICA.
There is a proposal by the president and many members of Congress to make small reductions in benefits to those retiring in the future. One of the more interesting legislative proposals on the tax side is this: People earning up to $110,000 each year now pay a Social Security (FICA) tax, but those earning above that amount pay no additional FICA. If that tax was applied to all earnings up to $250,000, Social Security would not only be financially sound for the rest of this century, but monthly benefit payments could be increased.
Whatever the solution, our moribund, reluctant Congressmen and women ought to get a move on and readjust our essential Social Security system, which provides our states with an enormous economic boost.
Pat Williams served nine terms as a U.S. Representative from Montana. After his retirement, he returned to Montana and taught at The University of Montana.
MORE IMPORTED STORIES
ARTICLES BY PAT WILLIAMS
Obama is correct: Russia is a 'regional power'
President Obama seriously rattled at least one cage with his recent reference to Russia as a “regional power.”
Congress's bad reputation is well deserved
The recent political rage to criticize the U.S. Congress for lack of accomplishment and unwillingness to compromise is deserved. In both the House and Senate, the negative actions of more than a few members have brought public derision upon all of them and the institution as well.
? Their flag next to ours?
There is a reason why, for the past half-century, America’s presidents have not met with the leaders of North Korea. They have understood the egregious actions of that leader were in violation of the internationally accepted rules of human rights. Our presidents knew their own “Dear Leader” ordered the wholesale slaughter of North Koreans. The world has long been aware of the concentration camps in which 100,000 North Koreans have been killed or allowed to die of starvation. Only two years ago, a special U.N. commission on human rights documented “unspeakable atrocities” committed by North Korea.