Social Security is a program that provides insurance and retirement benefits to the elderly, survivors of deceased workers, the unemployed and their families, and those with health issues or disabilities. The U.S. federal government, through taxes on specific employer and employee groups, maintains this system. The Social Security program began in 1935, in the midst of the Great Depression, when Franklin Roosevelt signed it into law. The enactment of social security helped stabilize the middle class and assured America’s seniors that after a lifetime of hard work, they could retire with comfort and dignity. Currently, there are two principal federal programs that offer support for the elderly: Old Age, Survivor’s and Disability Insurance (OASDI), otherwise known as Social Security, and Medicare. Social Security provides retirement income to the elderly, survivors, and disabled and is funded from current payroll taxes on the working-age population. In addition, the Supplemental Security Income (SSI) program serves as a safety net to ensure that the elderly and disabled have a minimum level of income, if their pension benefits are very low or they do not qualify for Social Security. Social Security benefits are monthly government payments to retired workers or their families who have paid Social Security taxes for a minimum of 10 years. The benefits are determined by an individual’s earnings, date of birth, and type of benefit. For example, to be eligible for Social Security retirement benefits, a person must have been an employee or a self-employed worker who is now age 62 or older and who has earned credits during his or her working years. Today, almost 54 million Americans receive Social Security benefits, consisting of 38 million retirees and their families, 10 million Americans with disabilities and their dependents, and 6 million survivors of deceased workers (Romney on the Issues). For many of these people, Social Security is the main source of income. In fact, the program provides over 50 percent of their family income (Romney on the Issues). For this system to work, a balance must exist between the younger, working generation that pays the taxes and the older, retiring generation that receives the benefits. From the years 1943 to 1963, a baby boom produced a large population for the now-elderly generation. The current working generation, is not as large as the baby boomers’. Therefore, eventually the smaller, younger working generation will not pay taxes sufficient to cover 100% of the baby boomers benefits’. Another problem involves how to maintain this program for the long term. Projections reveal that in 2033, there will not be enough money to supply the older generation with 100% of its Social Security benefits; instead, the amount of money will be enough to pay Americans only 75% of the promised benefits (Obama And Mitt Romney). To address the future problems, President Obama called on Congress to help create a bipartisan basis to preserve Social Security as a dependable source of income for American seniors, and as a program that provides significant benefits to survivors and workers who develop disabilities without putting these people at risk. The president also does not want to cut benefits for future generations and firmly opposes privatization. He rejects the notion that future hard-working Americans should be left to the ups and downs of financial markets.
In order to supply the baby-boomers with their expected benefits, Obama revived a 2008 campaign proposal, stating that the Social Security tax should be a percentage of the working generation’s first $250,000 of income, instead of the first $110,000 tax that is in place now (Obama And Mitt Romney). By doing this, more money will be provided for the Social Security program, ensuring that seniors will receive their complete benefits and helping to strengthen the system overall. Like President Obama, Mitt Romney wants to ensure the stability of the Social Security program over the long run. However, Romney differs on some details of how to approach the problems in the current system. The plans he has constructed include gradually increasing the retirement age for future generations and lowering the rate at which benefits grow for those with higher incomes. Romney remains vague about his views on privatization. The dynamic of the Social Security system would be significantly altered if Romney’s plans were put into action. Also, if Romney does believe in privatization, major risk would be involved with Social Security benefits, especially because of the potential of unstable financial markets. Because Social Security will not be a pressing issue in the years before 2033 and numerous issues are present in the United States, the candidates are not focusing primarily on Social Security. Nevertheless, Romney’s plans could be detrimental to the wellbeing of Americans that depend on Social Security. Obama, on the other hand, knows that necessary and unfavorable actions will need to be taken in order to serve the country’s best interest in the long run, but he will make these changes with everyone in mind. He will work with both Democrats and Republicans to find a solution that best suits the country and the people.
Social Security is a program that provides insurance and retirement benefits to the elderly, survivors of deceased workers, the unemployed and their families, and those with health issues or disabilities. The U.S. federal government, through taxes on specific employer and employee groups, maintains this system. The Social Security program began in 1935, in the midst of the Great Depression, when Franklin Roosevelt signed it into law. The enactment of social security helped stabilize the middle class and assured America’s seniors that after a lifetime of hard work, they could retire with comfort and dignity.
Currently, there are two principal federal programs that offer support for the elderly: Old Age, Survivor’s and Disability Insurance (OASDI), otherwise known as Social Security, and Medicare. Social Security provides retirement income to the elderly, survivors, and disabled and is funded from current payroll taxes on the working-age population. In addition, the Supplemental Security Income (SSI) program serves as a safety net to ensure that the elderly and disabled have a minimum level of income, if their pension benefits are very low or they do not qualify for Social Security.
Social Security benefits are monthly government payments to retired workers or their families who have paid Social Security taxes for a minimum of 10 years. The benefits are determined by an individual’s earnings, date of birth, and type of benefit. For example, to be eligible for Social Security retirement benefits, a person must have been an employee or a self-employed worker who is now age 62 or older and who has earned credits during his or her working years. Today, almost 54 million Americans receive Social Security benefits, consisting of 38 million retirees and their families, 10 million Americans with disabilities and their dependents, and 6 million survivors of deceased workers (Romney on the Issues). For many of these people, Social Security is the main source of income. In fact, the program provides over 50 percent of their family income (Romney on the Issues).
For this system to work, a balance must exist between the younger, working generation that pays the taxes and the older, retiring generation that receives the benefits. From the years 1943 to 1963, a baby boom produced a large population for the now-elderly generation. The current working generation, is not as large as the baby boomers’. Therefore, eventually the smaller, younger working generation will not pay taxes sufficient to cover 100% of the baby boomers benefits’. Another problem involves how to maintain this program for the long term. Projections reveal that in 2033, there will not be enough money to supply the older generation with 100% of its Social Security benefits; instead, the amount of money will be enough to pay Americans only 75% of the promised benefits (Obama And Mitt Romney).
To address the future problems, President Obama called on Congress to help create a bipartisan basis to preserve Social Security as a dependable source of income for American seniors, and as a program that provides significant benefits to survivors and workers who develop disabilities without putting these people at risk. The president also does not want to cut benefits for future generations and firmly opposes privatization. He rejects the notion that future hard-working Americans should be left to the ups and downs of financial markets.
Like President Obama, Mitt Romney wants to ensure the stability of the Social Security program over the long run. However, Romney differs on some details of how to approach the problems in the current system. The plans he has constructed include gradually increasing the retirement age for future generations and lowering the rate at which benefits grow for those with higher incomes. Romney remains vague about his views on privatization. The dynamic of the Social Security system would be significantly altered if Romney’s plans were put into action. Also, if Romney does believe in privatization, major risk would be involved with Social Security benefits, especially because of the potential of unstable financial markets.
Because Social Security will not be a pressing issue in the years before 2033 and numerous issues are present in the United States, the candidates are not focusing primarily on Social Security. Nevertheless, Romney’s plans could be detrimental to the wellbeing of Americans that depend on Social Security. Obama, on the other hand, knows that necessary and unfavorable actions will need to be taken in order to serve the country’s best interest in the long run, but he will make these changes with everyone in mind. He will work with both Democrats and Republicans to find a solution that best suits the country and the people.
Links:
http://www.businessinsider.com/obama-romney-social-security-plans-2012-10
http://www.whitehouse.gov/issues/seniors-and-social-security