According to Star Exponent, Senator Mark Warner, D-VA, and the “Gang of Six” are close to reaching a debt reduction deal. It is possible that a program such as Social Security will have to face substantial cuts, even though most are calling for the program to be left alone.
It is important for lawmakers to find a way to reduce the deficit but the answer may not be in slashing Social Security when so many Americans depend on it. Social Security does not contribute to our nation’s deficit. The program has a $2.6 trillion surplus which is collected through payroll taxes of employed Americans.
Social Security’s benefits such as Social Security Disability Insurance, helps maintain 20 million Americans who are unable to keep employment due to a disability.
Many experts have called for Bush’ tax cuts to expire, calling it a fair way to make corporations and those who make more than an average American to pay their fair share. The Bush tax cuts will cost Americans nearly $1 trillion to keep in place for the next 10 years. Meanwhile, we have been reminded that many corporations pay no taxes at all. In fact, sometimes we pay them.
Bank of America received $1.9 billion refund from the IRS, while GE collected $4.1 billion from the IRS, even though some corporation are known for sending a lot of its workforce overseas.
Additionally, some argue that Social Security has an easy fix by raising the eligibility age. Americans are healthier, live longer and we are fortunate to benefit from many medical and technological advances that raise our life expectancy.