Issues

Social Security Reform- Is it needed?

Social Security Reform- Is it needed?

    In 2017, Social Security program costs will exceed payroll tax revenues, and, in 2041, the combined retirement and disability accounts will be exhausted according to projections by Social Security’s Chief Actuary.  The primary reasons for the projected long-term inadequacy of financing under current law relates to changes in the demographics of the United States: 80 million baby boomers approaching retirement age, retirees living longer, and birth rates well below historical levels.

    Possible reform alternatives being discussed – singularly or in combination with each other – are (1) increasing payroll taxes, (2) slowing the growth in benefits, (3) using general revenues or (4) increasing expected returns by investing, at least in part, in private securities through either personal accounts or direct investment of the trust funds.

    Democratic leaders in both chambers must begin as soon as possible to address these solvency concerns.  The committees on which I serve do not have jurisdiction over the Social Security program.  Committees, as you know, have the responsibility to craft a legislative measure for consideration by the full House, but in this presidential election year, action is not expected.