January 10, 2018

Fixing Social Security is far more important than reducing income taxes

We've just suffered through a lengthy partisan debate about income taxes. The result is lower taxes for corporations which are already doing great as evidenced by soaring stock prices. Even before the newly passed tax reduction, many corporations have so much extra cash that they are buying back shares rather than buying new equipment or hiring more employees. The ultra wealthy got a huge tax reduction in terms of raising the amount of wealth exempt from the estate tax. This increase in the estate tax exemption helps wealthy families maintain their dynasties, further increasing the great divide between the top 1% and the rest of Americans.
The small tax cuts for the middle class will expire and the deficit is ballooning, meaning Congress will start talking about cutting benefits for lower and middle income families. See:
GOP Laying Groundwork To Cut Future Social Security, Medicare, Welfare Outlays
https://www.fa-mag.com/news/gop-laying-groundwork-to-overhaul-entitlement-programs-36060.html
What we really need Congress to do is to "fix" Social Security to ensure its long term viability! "The Social Security Trust Fund is currently projected to deplete its surplus in 2034, and policymakers of all stripes know a reckoning is coming." For some SENSIBLE ideas on how to act, check out the latest from the Center for Retirement Research:
How Social Security Gets Fixed Matters: http://squaredawayblog.bc.edu/squared-away/how-social-security-gets-fixed-matters/

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