Download A Well-Tailored Safety Net: The Only Fair and Sensible Way by Jed Graham PDF

By Jed Graham

This interesting ebook introduces the 1st Social safety reform notion adapted to fulfill the nation's monetary demanding situations and deal with an getting older population.

• greater than 50 charts and tables aspect the controversy over Social protection reform, together with the money advantages retirees might get lower than a variety of proposals

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Extra resources for A Well-Tailored Safety Net: The Only Fair and Sensible Way to Save Social Security

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1 And where would those ‘‘real savings’’ come from? 2 Under the 2005 proposal from fellow Republicans Sen. John Sununu and Rep. 1 trillion financing gap between 2009 and 2036, at which time it would still be running a deficit of more than $700 billion a year. 3 Forget the Easter Bunny. DeMint’s idea for saving Social Security was to pull a 6foot-tall, talking rabbit out of a hat. Under Ryan-Sununu, all workers younger than 55 would have the option of depositing their payroll taxes in an investment account, rather than allowing the government to spend those funds.

Why? Because while income taxes are 22 A WELL-TAILORED SAFETY NET progressive—with higher earners facing higher tax rates—when it comes to Social Security taxes, the highest earners face the lowest tax rates and the working class faces the maximum rate. ‘‘Because we are looting the Social Security trust fund and using it to fund the ongoing government, we are asking the wage earners to pay more than they should,’’ Sen. 6 These same lawmakers have argued in recent years that the trust fund will help pay Social Security’s bills for decades to come.

That’s not to say that Washington, over the past quarter-century, has acted without any semblance of fiscal responsibility. After all, both President Bill Clinton and the first President George Bush raised taxes. But it’s worth remembering that the budget deal that Clinton reached with the Republican-led Congress in 1997 set a goal of balancing the budget by 2002—after Clinton left office. Some of the credit for the budget surpluses of the late 1990s belongs to a windfall of tax revenue from an economy with a 4 percent jobless rate that was supercharged by a roaring stock market and the exploding growth of the Internet.

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