First, Social Security won’t get “scrapped”. But it will at some point have to be saved, and it is to be determined what it looks like after it is saved. The problem with Social Security is its financing. That financing is not sustainable.
Likely even when FDR signed it they knew it was unsustainable. But at the time, with workers’ life expectancy about equal to 65 years (what a coincidence!) and, even at 14% unemployment, about 15 workers for each recipient, Social Security running aground was far enough in the future that politicians gleefully signed the bill anyway.
Even progressives, at some times, admit that Social Security is not sustainable, hence the bill by Rep. John Larson. Among other things, Rep. Larson proposes raising taxes so that “the rich pay their fair share.” Well, when that Congress passed the bill and FDR signed it, the rich were paying their fair share of that social insurance program. Taxes were capped at so much income, and so were benefits. It seemed fair at the time, and that is the same law today. What we see in Rep. Larson’s bill and many progressive articles is an effort to move the goal posts. The next sentence is even more disturbing, since it implies that all income in the nation’s GDP belongs to the collective, to be distributed as we-all decide would be best. Full rank Karl Marx. (I have to wonder if there is ever any point that progressives agree that the rich are paying enough.)
The article contains a falsehood (currently). It claims “Upon announcing this executive order, the President promised to “terminate” payroll taxes if re-elected.” No. What Pres. Trump said then and hasn’t changed is that if he is re-elected he will seek to forgive the payroll taxes deferred from now to then. Nothing about terminating future taxes going forward from then. And, incidentally, Pres. Obama did the same thing a few years back.
Then, response to
True, and no good, SOL. Whether it is Social Security, or a private or state pension or insurance policy, if premiums paid are “too small” and payouts are too high the pension or insurance plan goes bankrupt. It doesn’t matter that you had paid lots of good money. It is still bankrupt, and no amount of squeezing a rock will get any blood, or payout, out of it. You are invited to sue the directors of the plan for every individual asset they’ve got, but it still won’t be enough to make good on the shortfall between the money the plan has and what it is contractually obligated to pay.
I once years ago saw an interesting article. You will recall that the Soviet Union essentially went bankrupt and out of existence. (A difference between us and them is that our Social Security will pay benefits even if the recipient was living in communist Poland, (many were), while their Social Security would not pay if the recipient was living outside the USSR.) Years later I read that pensioners were still receiving Soviet Social Security. Russia was paying it. The size of the checks was typically about $30/month.