Liberal Democrat

Liberal Democrat
Individual Freedom For Everyone

Tuesday, July 24, 2012

US Senator Bernie Sanders: Where is President Obama on Social Security?: What The Future of Social Security Could Look Like

I'm not a mindreader but if I had to guess, I would have to say the Barack Obama is a supporter of Social Security, its hard to imagine a Democrat who wouldn't be. He's always spoken in favor of Social Security and how important it has been to the country and so fourth. And I'm guessing Senator Bernie Sanders understands this but in one sentence Senator Sanders says there isn't any financial problems with Social Security. But in the next sentence he says that we should raise the cap on the Payroll Tax that funds Social Security, so that every worker would pay 6.2% of all of their income in Payroll Taxes. Not just Middle Class and Low Income workers and this reform would save he program, fix whatever financial difficulties that this program has. Well programs that don't have financial problems don't need to be fixed to state the obvious. What Senator Sanders and other Progressives are essentially calling for, what is over a 1T$ Tax Hike a year, that would be dedicated to just one program, Social Security. I believe what the President is open to, is reforming the program, gradually raise the Retirement Age that would only affect workers who can afford to. People who are physically able of working longer and can get by without that Social Security income for a few more years.

To look at the politics of this and Barack Obama is clearly skillful politician, he won't take any position that could cost him votes with Senior Citizens. And Progressive Democrats that he needs to vote for him, at least until after the Presidential Election. And if he ever decides to lead on this issue as President, he'll wait until next year to come up with a program. That wouldn't affect or hurt anyone who currently needs the program, current retirees and boomers who are about to retire. But for the future for Gen-Xers such as myself and people younger then me, would empower them by giving us the option to use Social Security as our own Personal Retirement Account. In a system that called Social Security Plus, where the base of Social Security would remain the same but where workers would have the option to increase their own Payroll Tax up to a certain point. That would be matched by our employers and set aside in our own PRA, that we would managed ourselves.

Social Security of course is not in crisis, Senator Sanders is correct about that, President Obama understands this and I believe most Republicans understand it as well. But it could be a lot better and we could fix the financing of it so when Gen-Xers and Gen-Yers are ready to retire. This system will be strong for them as well and not have to worry about paying into a system that we'll never collect from.