Social Security Reform in the Us
Social Security Reform in the United States by Todd Goren
An assignment submitted in partial fulfillment of the requirements for PAD 620 (Foundations of Public Administration)
School of Professional Studies
National University
Professor Robert Ripley
April 24, 2013
Abstract Reform proposals for the permanent appropriations that fund Social Security, aptly known as a mandatory entitlement along with its sister program Medicare; have dominated politics since the program’s inception. The debate focuses primarily on government spending and the need to preserve the accounts from which Social Security funding is derived from as well as ideological concerns like freedom of financial choice, the right and extent of government taxation, and wealth redistribution. Regardless of viewpoint, the consensus has been that alterations, at some level, must take place. Through commitment and compromise, changes can be made that will have lasting positive impacts on the financial security of the nation and the well-being of individual Americans alike.
Problem Social Security is a social insurance program officially called the Old-age, Survivors, and Disability Insurance (OASDI) and is funded by current payments into the program as opposed to funds borrowed by the federal government. A dedicated payroll tax enacted by the Federal Insurance Contributions Act (FICA) collects the money from employed Americans that funds the program. Upon retirement or in the event of an unfortunate disability, monetary benefits are paid by the Social Security Administration. Social Security has long-term funding challenges. It is estimated that the costs of this program will continue to elevate which will gradually deplete the accounts from which it is funded. According to the Social Security Trustees, the group that oversees the financial condition of the program, the costs are expected to exceed noninterest income from 2010 onward (SSA, 2012). By 2033, Social
An assignment submitted in partial fulfillment of the requirements for PAD 620 (Foundations of Public Administration)
School of Professional Studies
National University
Professor Robert Ripley
April 24, 2013
Abstract Reform proposals for the permanent appropriations that fund Social Security, aptly known as a mandatory entitlement along with its sister program Medicare; have dominated politics since the program’s inception. The debate focuses primarily on government spending and the need to preserve the accounts from which Social Security funding is derived from as well as ideological concerns like freedom of financial choice, the right and extent of government taxation, and wealth redistribution. Regardless of viewpoint, the consensus has been that alterations, at some level, must take place. Through commitment and compromise, changes can be made that will have lasting positive impacts on the financial security of the nation and the well-being of individual Americans alike.
Problem Social Security is a social insurance program officially called the Old-age, Survivors, and Disability Insurance (OASDI) and is funded by current payments into the program as opposed to funds borrowed by the federal government. A dedicated payroll tax enacted by the Federal Insurance Contributions Act (FICA) collects the money from employed Americans that funds the program. Upon retirement or in the event of an unfortunate disability, monetary benefits are paid by the Social Security Administration. Social Security has long-term funding challenges. It is estimated that the costs of this program will continue to elevate which will gradually deplete the accounts from which it is funded. According to the Social Security Trustees, the group that oversees the financial condition of the program, the costs are expected to exceed noninterest income from 2010 onward (SSA, 2012). By 2033, Social