Editor, Gazette-Journal:
Recently there has been a lot made of the future of Social Security given the recent discussion about perceived cuts and office closures. Let’s examine both.
As of January, there were 1,282 SS offices nationwide. Social Security is funded with payroll taxes paid by employees, employers, and the self-employed. The tax revenue goes into two trust funds: the Old-Age and Survivors Insurance Trust Fund and the Disability Insurance Trust Fund for disabled beneficiaries.
The Board of Trustees of Social Security and Medicare issue an annual report on current and projected financial status. They project that the OASI reserve funds will be depleted in 2033. Payroll receipts will be sufficient to pay just 79 percent of scheduled benefits in 2033, meaning 70 million people will see a 21 percent cut in benefits, assuming nothing changes.
There are lots of proposed solutions. All necessitate some changes for future recipients and/or higher SS taxes for high income earners. N...