Increasing Taxes to Bail Out Social Security Essay

Increasing Taxes to Bail Out Social Security Essay

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Increasing Taxes to Bail Out Social Security


In 1935 the United States was in the throws of the worst economic depression our country had ever seen. The President at the time was Franklin Roosevelt. As part of Roosevelt's "New Deal", he instituted Social Security, which established an old-age pension system, to be administered by the federal government, and financed by taxes on both employers and employees. This system was to help the older citizens and dependents of workers of the U.S. However, since its inception, Social Security has been turned into a retirement plan of sorts. Many retired and older citizens rely solely on Social Security benefits to live. The program has been successful for the last 64 years, but in the near future Social Security might run out of resources unless some drastic measures are taken to preserve it. The program will be collecting less than it is paying out by the year 2012 and be insolvent by 2030. Something must be done.

Social Security has been a safe and reliable source of income for the old for the last 64 years. Some 42 % of elderly citizens rely on social security as a large part of their income. Every month, millions of people over the age of 65 receive a check in the mail. The preceding fact is one of the main reasons that Social Security is in trouble. When Social Security was first instituted, the percent of the population that lived past 70 was much lower than it was today. Recent discoveries in the medical field, and new attitudes towards eating and exercise have extended the life span of Americans much longer than in 1935. This means that there will be much more people receiving Social Security and they will be receiving it for a much longer time. The next problem with the sy...


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... It seems to me that the government should stick with what it already does and knows how to do, that is, raise taxes. I am in favor of a sharp tax increase for Social Security. There is no risk involved in raising the tax, except for disapproval by the citizens of the U.S. I would also like to see the retirement age raised to 70 and the early retirement age raised to 65. This would make it lighter on the system as I mentioned above, providing more tax and fewer people to support. The measure I would implement would be to raise the cap on the amount of money that is taxable for Social Security. This would allow more tax money to be generated. These three things would set the system straight for the upcoming years. They are stable and sound ideas that have been proven to work. Privatization is not needed, we need to balance before we try to accumulate an abundance.

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