Social Security: Good, But Could Be Better

Source: Chris Farrell, Bloomberg Businessweek, March 25, 2013

…Social Security is the cornerstone of America’s retirement system. The system covers most workers, it’s administratively cheap, and it’s designed for a mobile labor force. … Instead of chiseling away at the Social Security cornerstone, let’s bolster it into an improved national retirement system. There are a number of ways to shore up the program’s underlying finances without cutting into benefits. For example, raising the cap on wages subject to payroll taxes from its current $113,700 for 2013 to around $250,000 extends the projected date of 2033 for exhausting the system’s reserves for another four decades or so. Eliminating the cap altogether essentially gets rid of any funding shortfall for the next 75 years. …