The Ideal, Pain-Free (for Almost Everyone) Way to Strengthen Social SecurityOf all the problems facing the nation, Social Security's projected shortfall is one of the easiest to solve. The Robert Ball/Nancy Altman plan solves Social Security's deficit, without cutting anyone's benefits. And 94% of all American workers will experience no tax increase under the proposal. The 6% whose Social Security taxes are affected will simply have deductions made at the same rate for at most a week longer into the year.
What Bob Ball and the author are convinced is the ideal, pain-free (for almost everyone) way to strengthen Social Security consists of three elements:
- Conversion of the 2009 residual estate tax to a dedicated Social Security tax, starting in 2010.
- The gradual restoration of the maximum taxable wage base, so that, as in the past, 90 percent of all earnings in covered employment would be taxed and counted for benefits.
- Diversification of the trust fund portfolio to include both stocks and bonds.