Despite taxing high-income earners, Mr. Biden’s proposal would only buy the project for an additional five years, according to the Urban Institutional Analysis.
However, Mr. Biden’s policy advisers said the project was a start-up. “The vice president’s financial proposal shows how he pays off long-term debt to all Social Security recipients,” Jean Sperling said. Mr. Bill Clinton and Barack Obama, Biden’s external adviser and former national economic adviser to presidents.
Every American is at risk, or someone close to them: about 178 million workers contribute to the program, and this year, 45.8 million retirees will receive benefits of nearly $ 70 billion – an average of 500 per month, according to Social Security Administration.
Under current law, pension benefits can only come from trust funds, which are said to be declining by 2034. The Social Security Administration evaluates It does not take into account infection. At that time, only 76 per cent of the tax collected would be enough to pay the concessions. (A Budget Office of Congress The September report predicts that the Foundation will run out of funds by 2031; Included Bipartisan Policy Center, The project will be completed soon.)
The inaction is serious, Mr. Aqabas said that as the insolvency approaches, the necessary changes will be increasingly painful – the tax increase should be higher and any cuts will be more severe.
“We have been waiting a long time to fix the problem,” he said, adding that “fewer people can play a role in the solution.”
According to a 2017 study, about 65 or more people live in households that receive at least half of their income from Social Security. Social Security Bulletin. About 25 percent of elderly families rely on social security for at least 90 percent of their income.