Retirement And Tax Reform

In general, countries experiencing high fertility and rapid population growth, have a “young” population structure and the important policy considerations are if there are enough schools and, sufficient jobs and housing to accommodate this population. Countries with “old” population structures face the problems of structuring and developing retirement and health systems to serve this older population and also they have a considerable reduction the number of the working force. The decline of the work force is one of the most dramatic economic tendencies of the past four decades in the United States. The individual’s decision of whether to stay in the workforce or to retire is based on the collaboration of a number of factors including the following: eligibility for Social Security benefits, availability of and benefits under an employer-financed pension plan, work

It will leave my generation, our children and grandchildren, with back breaking taxes, which will have its own domino effect of causing ever increasing inflation (Trust). To be eligible for Social Security, which once was at age sixty-two for full benefits and now is age sixty-six and soon will be sixty-seven and as the years go by who knows what the retirement age will be for us (SSA). Social Security is paid through payroll taxes which pay for the benefits of today’s retirees (SSA). Money in excess of what is needed to pay today’s benefits is invested in special treasury bonds. This system works well when there is a rather high ratio of workers to beneficiaries or retirees. For instance, in 1960, there were 5.1 workers for every Social Security recipient or retiree, but the demographics are changing because Americans are living longer and are having fewer children (Crane). Today, there are 3.3 workers paying Social Security payroll taxes for every one person collecting Social Security benefits (Crane). That number will drop to 2 to 1 in less than forty years (Crane). At this ratio there will not be enough workers to pay scheduled benefits at currents tax rates. The last reason why social

Notably, the elderly populace is growing rapidly, and will reach 3.4 million or 12.8% of the population. Eventually, in the next thirty years older adults will comprise of 20% of the total population due to the aging of 76 million baby boomers (Olson, 2001). Seeing that, entitlement programs and means-tested benefits, are presented, in order to bolster this increment of older adults. Accordingly, around 96% of the American workforce is secured by Social Security and it is likewise estimated that 58 million American will receive a total of $816 billion in Social Security benefits (Moody and Sasser, 2015). In fact, today 56 million or 17% of the population is enlisted in Medicare (Leonard, 2015). Therefore, this has presented an open deliberation about the eventual fate of Medicare and Social Security and regardless of whether changing Medicare and Social Security to means-tested benefits, instead of entitlement programs can resolve the policy issues.

This new system will be incredibly expensive, so there will be new taxes added on to support it. This decrease’s the average Americans spending power, which means now less money is being put into the economy. Even if the middle class can support this tax it will still hurt the economy. The reason being is that taxes and new taxes especially carry a mental affect with them. They make people feel as if they suddenly are losing money so they stop putting their money back into the economy. Not only will taxes be raised, people will be paying for millions of illegal immigrants who will be able to use this new system without ever paying for it, thus increasing the tax burden on the average working class American. The Middle class of America will be hit the hardest by this Health Care-Reform. They will pay the most and not benefit from it as much as those that they will be supporting. One might find themselves asking why the government would do this, why in the midst of an economic recession would they put more strain on America’s already shrinking middle class. Then once you look past the taxes you find even more expenses. In an article written by CNN it is stated that “Those picking a bronze plan, which carry the lowest monthly rates, may have to spend $5,000 or more before the insurance kicks in. The next highest level of coverage, the silver tier, can carry $2,000 deductibles. And once

Currently, the United States is contemplating at a forthcoming Social Security crisis. If changes are not forged, the Social Security system will not be able to keep up with the demanded payouts and is estimated to empty the trust fund around the year 2037. In this paper I will review a brief history of the Social Security program, touch upon the eligibility requirements, discuss what economists believe about the future of the Social Security Program, and finally state the Pros and Cons to the proposed raising of the age requirement for minimum payout.

In today’s society, the work industry is comprised of numerous generations from baby boomers to millennia’s. Due to reasons ranging from increased cost of living to political policies, Americans are being forced to work longer in order to obtain the social security benefits they’ve contributed to during their careers. Each generation has certain generational influences such as war times and civil rights for the baby boomers and social media and the technology boom for the millennia’s. One constant that has not changed, however, is that the average American has to work for a living, and with the evolution of the US economy, they are having to work longer and are retiring later.

midst of a real and growing retirement crisis, affecting the middle class, so the last thing America should

As a country, we are millions of dollars in debt and who is the most to blame for this predicament? Of course, it’s the people that are older and have been around and spent all our money. My proposal is that we eliminate all the people using our Medicare and give the people of the younger generation the use of that money to get out of debt because that would reduce the money the government is paying on us and increase the money the government is taking in.

It will leave my generation, our children and grandchildren, with back breaking taxes, which will have its own domino effect of causing ever increasing inflation. To be eligible for Social Security, which once was at age sixty-two for full benefits and now is age sixty-six and soon will be sixty-seven and as the years go by who knows what the retirement age will be for us. Social Security is paid through payroll taxes which pay for the benefits of today’s retirees. Money in excess of what is needed to pay today’s benefits is invested in special treasury bonds. This system works well when there is a rather high ratio of workers to beneficiaries or retirees. For instance, in 1960, there were 5.1 workers for every Social Security recipient or retiree, but the demographics are changing because Americans are living longer and are having fewer children. Today, there are 3.3 workers paying Social Security payroll taxes for every one person collecting Social Security benefits. That number will drop to 2 to 1 in less than forty years. At this ratio there will not be enough workers to pay scheduled benefits at currents tax rates. The last reason why social Security is unstable is because the government does not guarantee the benefits. According

This new tax plan brings a slew of new tax reforms. Despite the tax cuts, it seems as if high earners and corporations will walk away from this tax reform with the best outcome. people who make less than 30,000 will be hurt by this plan the New York Time says, “Americans earning

In the “The Power of Zero How to Get to the 0% Tax Bracket and Transform Your Retirement” by David McKnight is about the government making promises of trillions of dollars for programs a few are Social Security and Medicare that they can keep. The only way the government can deliver what they promise is by raising taxes some people believe they even have to double the taxes to keep the country solvent. McKnight provides us with a step by step map on how to get to the zero percent tax bracket which will be effective in eliminating tax rate risk from your retirement. It’s important to be in the zero percent tax bracket because if tax rates double zero stays zero when you multiply it by two. McKnight’s wants us to put as much of our retirement

Your three pronged approach to negate the passing of Social Security makes perfect sense. The taxes that are levied to support government programs hurt the employees and employers in the long run. As you mention, the program outlay of monies would never equal the income generated by taxes as the ratio of workers continue to decrease compared to the number of program recipients.

With the workforce in America decreasing due to hard economic times, there is no guarantee the money put into the reserve will sufficiently support a generation when it is time for retirement. Depending on Social Security to support a person financially when ready to retire, will leave that individual in even more of a struggle than the beneficiaries trying to survive in these earlier years of the 21 century. Social Security benefits represent about 41% of the income of the elderly; if there is not enough to support even half of the elderly’s financial needs now, there is no reason a younger person should depend on it alone for retirement (Dewitt, 2010) in the future.

(5) Currently SS funds are collected and distributed on a pay - as - you -go (PAYG) system in which Social Security taxes from individuals are immediately distributed by the means of the SS Administration as it sees best fit. This means that taxes collected are not reserved for the individual who has paid them: in Rose 2 the current state he or she must rely on those persons paying SS taxes during the time of their retirement (Becker). For a number of these characteristics and future issues, the Social Security System must be reformed or completely abolished to meet the needs of tomorrow. The leading concerns of Social Security that merits the immediate initiation of reform are the demographic and economic circumstances in the coming century. Even though "forecasting the economy and budget over such a long period is uncertain" there remain many "certainties" regarding problems facing Social Security in the first half of the 21st century (OMB, Budget Perspectives 23). The Federal Government's responsibilities extend well beyond "the five- or six-year window" that has restricted the focus of recent budget analysis and debate. Of these "certainties" are the mounting challenges posed from the baby-boomer generation. This generation, born in the years after World War II, is aging

Although mandatory retirement is not largely popular, it still has an effect on many older workers and how they plan for retirement. "Mandatory retirement involves less than 1 percent of the work force and so opens up only a small fraction of the total jobs", because