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Paulson: Social Security needs to be fixed

2008-03-26 14:54:29 (GMT) (Caymanmama.com - Government News)

New York

CNN reported that Henry Paulson, Treasury Secretary, called to maintain the system strong and made a report in which all the funding shortfalls of the program were mentioned in detail. He did this because he found Social Security, financially unsustainable.

It was then said that the federal government should start giving its due payments towards the Social Security fund in 2017 so that they can keep on bringing 100 percent benefits out of the program. In case the system remains unaffected, Social Security can only be capable to make out 78 % benefits by 2041, as promised to prospect retirees.

Maintaining social Security would be the most important issue looked after by the next president. The proposals mostly involve reducing benefits or increasing taxes. But both the proposals were opposed by the people, benefit reductions were typically opposed by democrats whereas Republicans opposed tax increment. According to Paulson, if the action will be taken as soon as possible, it will involve to make less possible changes.

For many years, the program of Social Security has been more of intriguing payroll taxes from the workers than it was related to fund benefits. Whatever surplus borrowed by the government was supposed to pay back to the people together with interest after issuing special bonds into the program as promised by the government. One of the main reasons for fund shortfall is due to the shrinking of number of working force as compare to the number of retirees which has significantly increases.



NewsReporter · Filed Under Government 

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