Naïve editorial writer says Social Security Program is in a better place these days.
Froma Harrop in her recent editorial comment in the Columbus Dispatch headlined that the ‘Social Security program is in a better place these days’ and that ‘as many middle-class Americans survey the ashes of more recent reversals in their finances…Social Security is looking good.” Naïve is the kindest word to describe her editorial comment. She is aware that the program is projected to go bankrupt by 2033 but indicates that simply by raising the income cap on Social Security contributions of $113,700 in 2013, the program can be brought back to solvency. In addition, she further postulates that such a step will fund the proposal by Democrats Harkin and Brown to raise the Social Security Retirement benefits by $70 per month and to favorably alter the cost of living adjustments. Her numbers don’t add up. As we have noted before, if you raise the cap to 90% of the wages paid (the historical number used and continued to be advocated by most commentators advocating a tax increase), only 36% of the deficit of the Social Security Retirement program is covered. If you raise the cap to all wages paid, then you cover 98% of the deficit of the current program. Such a step would not cover the deficit caused by the Harkin-Brown proposal. The Social Security Retirement program is not in a better place and it is not looking good to most people. Many of us currently in retirement want this issue addressed responsibly now so that we don’t have our retirement benefits cut by 25% in 2033. We also want our children and grandchildren to have this program to support them in their retirements. Social Security Retirement will only be in a better place and look good when responsible action is taken by Congress and the President. We hope they act in 2014.
Harry Pukay-Martin
