Overview

 High School: Social Security ReformHow Should We Reform Social Security?Copyright free image Supporting QuestionsWhat challenges does US Social Security face? What changes could improve Social Security?High School History of Social Security Inquiry How Should We Reform Social Security?C3 FrameworkD2.Eco.12.9-12. Evaluate the selection of monetary and fiscal policies in a variety of economic conditions.Staging the Compelling QuestionWatch “10 Global Challenges for Social Security” and “Social Security Projected to be Depleted in 2035” and identify the common concerns facing Social Security programs across the Americas, including the US.Supporting Question 1Supporting Question 2What challenges does Social Security face?What changes could improve Social Security?Formative Performance TaskFormative Performance TaskCreate a list of prioritized concerns for Social Security.Create a “Benefit vs Challenge” T-Chart analyzing specific proposals for reforming Social Security.Featured SourcesFeatured SourcesSource A: “Five Facts: The New Social Security Board of Trustees Report”Source B: “Quick Take Social Security”Source C: “Social Security Only 16 Years from Insolvency”Source D: “Social Security is Drying Up”Source A: “Fixing Social Security”Source B: “How the Next President Could Save Social Security”Source C: “How the Democrats would fix Social Security”Source D: “3 New Plans to Fix Social Security”Source E: “Meeting the Social Security Challenge”Source F: “An interactive tool to fix Social Security”Summative Performance TaskARGUMENT: How should we reform Social Security? Construct an argument (e.g., detailed outline, poster, essay, letter to the editor) that evaluates the need to use various methods to adjust Social Security funding and costs using specific claims and relevant evidence from sources while acknowledging competing views.EXTENSION. Students can explore additional proposals and mix varied proposals to see potential funding/cost impact on Social Security using an interactive tool from The Committee for a Responsible Budget. Taking Informed ActionUNDERSTAND: Survey class family members about Social Security reform proposals being advocated for by class. ASSESS: Review Survey data to identify strength of claims and proposals based on different demographic segments.ACT: Use information from survey review to adjust claims and argument when submitting letters to the editor to different population groups. OverviewInquiry DescriptionThis inquiry leads students through an investigation of contemporary projections indicating future funding shortages for Social Security, the causes of these shortages, and an analysis of some prominent proposals to reform Social Security. This this inquiry highlights the following disciplinary standards from the C3 Framework:D2.Eco.12.9-12. Evaluate the selection of monetary and fiscal policies in a variety of economic conditions. It is important to note that this inquiry requires prerequisite knowledge of the reasons for implementing the Social Security Act and program, the current use of Social Security and role in personal and national economic matters. Additionally, familiarity with the legislative process of passing laws for extension activities.Note: This inquiry is expected to take three or four 50-minute class periods. The inquiry time frame could expand if teachers think their students need additional instructional experiences (e.g., supporting questions, formative performance tasks, featured sources, writing). Teachers are encouraged to adapt the inquiry to meet the needs and interests of their students. This inquiry lends itself to differentiation and modeling of historical thinking skills while assisting students in reading a variety of sources.Structure of the Inquiry In addressing the compelling question, “How Should We Reform Social Security?”, students will analyze funding processes and adjustments, demographic challenges, and economic policy implications that will shape public conversations around Social Security and its future. While exploring current concerns for Social Security funding students will be exploring how Social Security works and funding mechanisms for the program currently. From there, students will analyze prominent proposals for reforming Social Security and evaluate the anticipated benefits and challenges from economic, public and individual perspectives. Finally, students will develop their ability to weigh varied types of evidence to support their claims and arguments while also presenting them publicly to others in multiple formats. Staging the Compelling QuestionTo stage the compelling question, teachers should have students watch two short videos about the current challenges facing Social Security. If needed, this exercise could be augmented with additional background reading or teacher presentation on the history of the Social Security program, both for identifying its origins and purpose past and present. The videos should be framed as identifying Social Security as existing in all societies and that concerns about it are not unique to just the United States. Students should watch the two videos for the commonality in concerns across nations and for the reasons why we are concerned about Social Security today. After the videos the students individually identify concerns from across the Americas that are common with the US. The teacher should facilitate a large group discussion about the concerns that were identified and then lead the students to supporting question one and formative tasks. Supporting Question 1 The first supporting question is “What challenges does US Social Security face?”. The formative task is, create a list of prioritized concerns for Social Security. Teachers may implement this task with the following procedures:Students can individually identify 3-5 concerns facing US Social Security in the near future and prioritizing the concerns.Students could collaboratively with small groups of peers find consensus around 3-5 concerns and the prioritization of them.Students could share with the whole class their 3-5 concerns identifying the commonalities or categories of concerns.Finally, students record or journal their own prioritized listing of the top 3-5 concerns with evidence from the sources A-D. The following sources were selected to focus student analysis: Featured Source A is a graphic identifying recent concerns and efforts with Social Security. Featured Source B is a graph showing historic, current, and projected Social Security funding.Featured Source C is an excerpt from a press release by the Committee for a Responsible Federal Budget warning of the insolvency of the Social Security program.Featured Source D is an excerpt from an article in CNN Business, detailing the main concerns with the amount of funding for the current Social Security program.Supporting Question 2 The second supporting question is “What changes could improve Social Security?”The formative task is to have students read and review proposals and create a “Benefit vs Challenge” T-Chart analyzing specific proposals for reforming Social Security:?Benefits to Proposed ReformChallenges to Proposed ReformStudent List...Student List…Teachers may implement this task with the following procedures: Students begin by reading and reviewing Source A graphic on popular support for various Social Security reform proposals. Teacher should identify vocabulary and proposals that need clarification and provide this. Additionally, students could reflect on the data identifying popular support for various proposals. Students could use one of the three sources, B, C, or D to read and review various proposals. Sources are in order of literacy and content complexity, with B being the most complex, C less, and D the least. Teachers should determine student/class reading levels and decide if they want to have students use just one common source, or assign different sources based on individual or group needs.After individually reading the source, students should collaboratively create a T-Chart of the proposals presented in their reading. Students should complete T chart using Source A, their reading Source B, C, or D and Sources E (chart of plan costs) and F (interactive tool analyzing proposal costs). Student groups should then share their T-Charts with the class.The following sources were selected to focus student analysis:Featured Source A is a graphic identifying surveyed US support for various types of Social Security reforms. Featured Source B is the most complex and challenging article detailing proposed Social Security reform proposals.Featured Source C is a less complex and challenging article detailing proposed Social Security reform proposals.Featured Source D is the least complex and challenging article detailing proposed Social Security reform proposals.Featured Source E is a chart for students to use to evaluate the expected savings or cost from various Social Security reform proposals.Featured Source F is an interactive website that allows students to examine the costs of proposed Social Security reform proposals as well as vary combinations of proposals to see their net impact on Social Security costs and funding in the future. Summative Performance TaskAt this point in the inquiry, students have examined the current anticipated concerns about Social Security funding imbalances, public support of some proposals, and anticipated costs/savings of various proposals to address Social Security funding shortfalls. Students should be expected to demonstrate the breadth of their understandings and their abilities to use evidence from multiple sources to support their claims. In this task, students will present their own individual argument using multiple claims supported by evidence to answer; how should we reform Social Security, in the format of a letter to the editor advocating in support of their proposed changes. Students’ arguments will likely vary, but could include any of the following: Social Security can be fixed in a variety of different ways including raising the retirement age, increasing taxes, and raising the Social Security tax cap.While a variety of plans have been proposed, none of them can adequately fix the problems that face Social Security.To extend their arguments, teachers could have students adjust the target audience of their letter-to-the-editor to be directed toward ISSA, AARP, local political officials, union/labor/worker groups, chamber of commerce, etc. Students could expand counter arguments to address multiple proposals they would support within their letter to the editor. Students have the opportunity to Take Informed Action by surveying peers and class family members about various proposals, reviewing these findings, and using the findings to intentionally adjust/frame claims and arguments when submitting letters to their school newspaper, local political leaders or newspapers. Staging the Compelling QuestionFeatured Sources: “10 global challenges for social security – Americas International Social Security Association (ISSA),” June 13, 2018. Video.“Social Security projected to be depleted in 2035 CNBC,” April 22, 2019. Video. Found online: online: Question 1Featured Source Source A: “Five Facts of the New Social Security Board of Trustees.” May 3, 2019, Real Clear PolicyFound online: Question 1Featured Source Source B: “Quick Take on Social Security,” Committee for a Responsible Federal Government, April 19, 2019.Found online: Question 1Featured Source Source C: “Social Security only 16 Years from Insolvency,” Maya MacGuineas, Committee for a Responsible Federal Budget, April 22, 2019.“Social Security faces a nearly $15 trillion funding shortfall and will face insolvency in only 16 years. That’s when today’s 51-year-olds reach the normal retirement age and when today’s youngest retirees turn 78. At that point, if not addressed, the law calls for a devastating 20 percent across-the-board cut for all Americans who rely on the program.”Found online: Question 1Featured Source Source D: “Social Security is Drying Up: This Plan Could Save It,” William G. Gale, CNN Business, April 27, 2019.William G. Gale is senior fellow at the Brookings Institution and author of Fiscal Therapy: Curing America's Debt Addiction and Investing in the Future (Oxford 2019). The opinions expressed in this commentary are his own.“The new Social Security Board of Trustees report, released earlier this week, makes clear once again that one of the nation's most popular and successful programs is financially unsustainable. Social Security provides crucial income support every year for tens of millions of beneficiaries including retirees, surviving spouses, dependents and the disabled. But it is largely a pay-as-you-go system; the taxes that today's workers pay mainly cover the benefits of today's retirees. As a result, the coming rise in the number of retirees per worker will wreak havoc on the system.If Congress fails to act, Social Security's reserves will dry up by 2035 and workers will receive only about 75% to 80% of the benefits they are entitled to. Either payroll taxes will have to rise, benefits will have to fall or some other resource must be tapped.A reform plan should restore the program's long-term solvency and put it on a sustainable basis.”Found online: Question 2Featured Source Source A: “Fix Social Security? Americans Do Not the Answers,” Vera Quest Rapid Research, March 27, 2013 Found online: Question 2Featured Source Source B: “How the Next President Could Save Social Security,” Dave Merrill and Chloe Whiteaker, Bloomberg, October 26, 2016, Interactive Site.**Note: This source is best utilized on the website for options and information for students:Found online: Question 2Featured Source Source C: “How the 2020 Democrats would fix Social Security,” Yahoo Finance, Ben Werschkul, July 26, 2019“The Social Security trust fund will be depleted in about 15 years without action, according to the 2019 Trustees report. Deep cuts in benefits for current and future retirees would follow.Social Security’s cost has exceeded its non-interest income since 2010, the report says. Funding this program is a perennial political dance in D.C. And given that older Americans have higher voter turnout than any other age group (71% of Americans over 65 voted in the 2016 presidential election, according to U.S. Census Bureau data) – the Democrats running for president are beginning to put forth their ideas for shoring up Social Security.The total cost of the program in 2018 was $1 trillion. Democrats pretty much all want more money to be put into the Social Security trust fund and most say the program should expand.How to pay for itThe Social Security payroll tax rate is currently 6.2% for the employer and 6.2% for the employee. But as Democrats often note, the taxes only apply to yearly wages up to $132,900.There are a few plans to change that while raising money to shore up the program.Sen. Bernie Sanders introduced a bill this year to apply Social Security taxes to all income (both wages and investment income) above $250,000. “It is incomprehensible that while Social Security is in financial crisis, we are allowing millionaires to stop paying in to the program,” Sanders said at the time. The bill is co-sponsored by fellow candidates Cory Booker, Kirsten Gillibrand, and Kamala Harris.Sen. Elizabeth Warren’s plan is to “gradually eliminate the cap on income” (apparently for all wages over $132,900). Sen. Michael Bennet has also discussed “lifting the payroll cap.”In the House of Representatives, a plan known as Social Security 2100 would allow wages above $400,000 to be taxed for Social Security. The bill would also gradually phase in a tax increase to 7.4% for both workers and employers by 2043. Former Rep. Beto O’Rourke is on board with the plan and his campaign notes that he co-sponsored a previous version of the bill when he was in Congress.Other 2020 candidates in the House have also signed on to this plan, including Rep. Tulsi Gabbard, Rep. Seth Moulton, and Rep. Tim Ryan.Former Vice President Joe Biden has voiced support for the idea of taxing wages above $400,000 with a “donut hole” for people who make between $132,900 and $400,000.Mayor Pete Buttigieg has yet another approach: raise the cap to $250,000. “If we just elevated the cap on the level of income eligible for payroll taxes from $135,000 to the $250,000 neighborhood, that would go a long way towards sustainability,” he recently said.The various plans would impact a small piece of the larger workforce. According to a recent analysis by the Center for Economic Policy Research, 6.2% of workers would be impacted by raising the current cap of $132,900. If earnings on $250,000 were taxed, it would be 1.8% of workers who pay more. If the level is $400,000, 1% would be affected.The Republicans are, by and large, not fans of any of these ideas. Reps. Kevin Brady (R-Texas) and Tom Reed (R-NY) responded to the Social Security 2100 plan with an op-ed entitled “The Democratic plan for smaller paychecks”Promises of new benefitsWith the new revenue that would come with raising salary limits, many candidates are promising expansion of Social Security.The Bernie Sanders plan would increase the amount of benefits for all Social Security recipients, with a special focus on helping low-income seniors. Sanders and Warren are the co-chairs of the “Expand Social Security Caucus” in the Senate.The Sanders plan would also change the way that benefits grow with inflation, known as the cost of living adjustment, or COLA. Sanders, and most other candidates, have discussed adjusting premiums based on the Consumer Price Index for the Elderly (CPI-E). Right now, benefits are calculated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).The CPI-E focuses on the prices of goods that seniors spend most of their money on, like prescription drugs and medical care. Historically, the CPI-E has risen faster than the CPI-W and so the proposed change would likely lead to more generous benefits (and higher costs) over time.The Social Security 2100 plan would deliver many of the improvements noted above (including a 2% increase in payouts and a switch to the CPI-E). That effort, led by Congressman John Larson, would also lower the Social Security taxes that some current retirees pay on their benefits.Another area of focus on the campaign trail is on how benefits are calculated.Social Security payouts are tabulated by averaging out the 35 highest-earning years for each recipient. In other words, people who made more money in the workforce get higher payouts in retirement.”Accessed at: Question 2Featured Source Source D: “3 New Plans to Fix Social Security,” The Fiscal Times, Michael Rainey, April 23, 2019. “According to the annual trustees’?report released Monday, the combined trust funds for Social Security, currently valued at $2.9 trillion, will be exhausted by 2035 (see the chart from CQ Roll Call below). At that time, the Social Security system will have to cut benefit payments by about 20% – unless, that is, Congress acts in the meantime to stabilize the program’s finances.The good news is that there is no shortage of ideas for how to fix Social Security so that it continues to pay out full benefits for many decades to come…* A plan to raise the payroll cap and tax investment income:?A bill?spearheaded by presidential candidate Sen. Bernie Sanders (I-VT) and Rep. Peter A. DeFazio (D-OR) would apply the current Social Security payroll tax of 12.4% to incomes over $250,000. The tax, which is split between employers and employees, currently applies only to incomes up to $132,900. In addition, the bill would create a new 6.2% tax on investment income for high-earning households ($200,000 for individuals, $250,000 for couples). Sanders?says?these changes would affect less than 2% of wage earners.The increased revenues from these taxes would be used to provide more generous benefits while pushing the trust funds’ exhaustion date back to?2071, according to Social Security’s actuaries.* A straightforward payroll cap increase:?A bill from Sen. Mazie K. Hirono (D-HI) and Rep. Ted Deutch (D-FL) would phase out the Social Security earnings cap over seven years, while also making the inflation adjustment used for benefit increases more generous. The Social Security actuary said this approach would keep the Social Security trust funds solvent until?2053.* A plan for permanent solvency:?A bill from Rep. John B. Larson (D-CT), Sen. Richard Blumenthal (D-CT) and Sen. Chris Van Hollen (D-MD) would apply the payroll tax to incomes over $400,000 while phasing in a higher tax rate of 14.8% over 24 years. The lawmakers also propose to increase Social Security benefits, shield more benefits from income tax and provide a higher minimum benefit for low-income retirees. The plan, which has 203 House co-sponsors, would extend the solvency of the Social Security trust funds for at least?75 years, the projection period used by the Social Security actuaries…”Accessed at: Question 2Featured Source Source E: “Meeting the Social Security Challenge,” taken from “How to Keep Social Security Secure,” The American Prospect,” Henry Aaron, 2018Accessed at: Question 2Featured Source Source F: “An Interactive tool to fix Social Security,” Committee for a Responsible Federal Budget, 2018**Note: This source is best utilized on the website for options and information for students:Found online: ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download