Tuesday, Sept. 4, 2018 | 2 a.m.
There is a proposal to cut Social Security, which will have enough money for 15 years, and Medicare, which has enough money for eight years. Yes, there is looming crisis, but it’s in the federal budget. This was caused by the tax law of 2017, which cut over a trillion dollars of income.
Social Security and Medicare are not broken. These plans are in the Federal Insurance Contributions Act of 1935, which has been solvent for 83 years. When more income is needed, the cap subject to the payroll tax raises. It’s now $128,700.
This isn’t a savings plan, but a safety net to keep the elderly from becoming destitute. It provides only a minimum, but it people still should save and invest to supplement this amount.
When Social Security collects more in payroll taxes than it pays out, that surplus has been borrowed by the government, then paid back with interest. Not having a surplus big enough to give out loans is a poor reason to cut benefits. The money for Social Security comes from our paychecks and it belongs to us, so keep your hands off of it.