Monday, September 17, 2012
One the public trustees of Social Security, Charles Blahous, believes that the federal government will not be able maintain Social Security in its present form. In fact, Mr. Blahous believes that people should now plan for their financial future without the potential aid of Social Security. He also believes that this will become more of a reality if changes are not enacted in the coming years. One of the primary reasons is that by the year 2033, the resources that fund Social Security will not be sufficient to continue maintaining the program and providing full benefits to those who rely on the program.
To correct the problems, both sides of the political spectrum have offered proposals. The right has offered to low and contain the costs of Social Security. On the other hand, the left has offered to raise taxes to compensate for the increased costs. What this means for the general population is that changes in Social Security will most likely be placed on the younger generations rather than the older generations. This is also because the government will not remove the benefits of people who are already receiving Social Security. Mr. Blahous argues that regardless of which option Congress chooses, the window for either option working will fade away with time.
See Mike Godfrey, US Social Security Nears Funding Crisis, Tax-News.com, Sept. 6, 2012.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.