Social Security Benefits

When it comes to Social Security, those who need the benefits are not receiving them, while those who do not need them, have an abundance of benefits. Under the current Social Security plan, benefits are estimated to end by the year 2040 unless America changes the way we approach said benefits. Also, young workers will end up receiving less money in benefits than they pay in taxes right now under the current plan. Right now, citizens are taxed according to what they make, but only up to $70,000, which means the higher and lower classes are not being taxed proportionally. We argue that we should tax a percentage of the total income rather than income up to $70,000. We have also decided to use annual evaluations to see what level of benefits

Background On October 29, 1929, the stock market crashed, spiraling America into The Great Depression. The unemployment rate rose from 5% to about 25% leaving millions of Americans without any source of income. In addition to the crash of the stock market, a drought overtook the country, preventing the growth of crops. Without agriculture, many families were thrust into starvation. This devastated the economy, leaving American families desperate for some type of economic reform. Huey Long, a senator in the 1930s, created the “Share the Wealth” program, which redistributed wealth among the lower classes, in an effort to stabilize the American economy. This program was one of the earliest developments of our current Social Security system. The “Share the Wealth” program built the foundation for Franklin D. Roosevelt’s eventual solution to the Great Depression.
2. Restatement of the Problem In the analysis, we were requested to find a viable solution to the current problems with the Social Security system. Under the current system, young workers are taxed more than they will actually receive in benefits, causing the system to gradually deteriorate by the year 2040. Some recipients receive unnecessary benefits, while others who greatly need benefits are not receiving the appropriate amount. Reevaluations do not take place, meaning that some benefits are continuously distributed, even after they should have “expired”. Contrarily, others may qualify for more extensive benefits,

Attempt to match the Canadian residency tax.
i. Residents include: anyone that owns a home in the U.S., has a spouse or long-term partner in the U.S., dependents in the country, owns personal property, social ties, religious organizations, owns a U.S., credit card or bank account, driver’s license, passport, or health insurance. ii. Anyone living in the U.S. for more than 183 days is considered a “resident”. iii. Tax also depends on the resident’s situation (income, dependents, etc.) iv. Larger number of people will be taxed, which would allow the current tax rates to lower, similar to Canada’s tax system, which is shown in the graph below. 6. Financial consultants and career consultants available to applicants.
a. If an applicant is in the process of reapplying for Social Security benefits, but has been unable to find a job and are able to work, career consultants are available to assist them in the finding of a job.
b. If an applicant is in the process of reapplying for Social Security benefits, has a job, but is still experiencing financial issues, they have the opportunity to speak with a financial consultants that will teach them budgeting, so they will receive only the bare minimum and eventually be able to thrive without Social Security