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Most Americans oppose a reduction in Social Security benefits as well as raising the retirement age for Social Security.
Thereby, other proposals have been suggested. These include cutting benefits, privatizing the system, and eliminating the cap on payroll taxes. If the cap were raised, well-off workers pay tax on their full income as middle-income workers now do.
An AARP poll in 2010 showed that 85% of adult Americans will not accept a reduction in Social Security benefits as a Social Security system solution. In fact, 57% of adults under 50 are willing to pay higher payroll taxes to ensure that Social Security will be there when they need it.
An August 2010 survey from Greenberg Quinlan Rosner Research tested reactions to a variety of Social Security solutions. One of the options was raising the retirement age for Social Security to 70. Two-thirds of respondents were against it. Raising payroll taxes? A solid 61 percent want to eliminate the cap on payroll taxes.
A 2006 study by the Urban Institute found that the revenues generated from raising the retirement age for Social Security--if Americans worked five years longer--would more than wipe out the projected Social Security deficit because of continued payroll and income tax payments. Longer work lives for many Americans will help to ease those Social Security problems, lead to a reduction in Social Security fiscal imbalances, and relieve financial stress for the system.
Regardless of what Congress does or doesn't do for the reduction in Social Security, an unprecedented upturn in the number of older Americans who delay retirement is likely to accelerate over the next two decades. According to a RAND Corporation study, this natural adjustment of the retirement age for Social Security should help ease the financial challenges facing both Social Security and Medicare.
In 2010, U.S. Congressman John Boccieri of Ohio sent a letter to President Barack Obama to resist raising the retirement age for Social Security, and oppose a reduction in Social Security benefits or any effort to privatize the sysstem. The letter argued that Social Security should not be cut for budgetary reasons. In fact, the law prohibits Social Security from adding to the national deficit.
Signers of this letter wanting to keep the retirement age for Social Security included the following Ohio Members of Congress: John Boccieri, Marcy Kaptur, Dennis Kucinich, Marcia Fudge, Betty Sutton, Mary Jo Kilroy, Tim Ryan and Zach Space.
Topic: Social Security
Subtopics: Introduction • Social Security as Typical Retirement Income • The Importance of Credits • Social Security Age • History of Retirement Age • Calculating Social Security Benefits • Spousal & Survivor Benefits • Reduction in Benefits from Work • Income & Benefits • Windfall Elimination Provision • Government Pension Offset • When to Retire? The Break Even Point • When? Personal Circumstances • When? Family Circumstances • Earnings Statement & Benefits Calculator • Income Tax on Social Security • Tax Examples • Social Security Problems • Social Security Solutions • Tips from SmartMoney • Tips from Wichita Falls