Revised edition theSocial Security FiX-it book - Boston College
Revised 2014 edition
the
Social Security
FIX-IT book
a citizen¡¯s
guide
a review of
the program,
its financing
problem, and the
leading proposals
for eliminating
the shortfall.
everything
the earnest but
over-burdened
citizen needs to
know. Cheerfully
narrated and
handsomely
presented in
52 pages.
By Steven Sass, Alicia H. Munnell, and Andrew Eschtruth
Art direction and design by Ronn Campisi, Ronn Campisi Design
Illustrations by Melinda Beck
Funded by a generous grant from the Ford Foundation
Contents
4
6
8
10
12
Social Security in a nutshell
A program that helps everyone
The benefit design
Social Security¡¯s financing problem
Only 2 ways to fix the problem
The need for a long-lasting fix
How benefits could be cut
16 ? 1 Cut benefits across-the-board today
18 ? 2 Raise the Full Retirement Age
20 ? 3 Freeze the purchasing power of benefits
22 ? 4 Cut benefits for higher earners
24 ? 5 Change the cost-of-living adjustment
26 ? 6 Do nothing (but cut benefits in 2033)
How revenues could be raised
30 A 1 Increase the payroll tax today
32 A 2 Raise the earnings cap
34 A 3 Tax health insurance
36 A 4 Transfer start-up costs to general revenues
38 A 5 Raise the return on assets
40 A 6 Do nothing (but raise taxes in 2033)
What about individual accounts?
42 By themselves, they don¡¯t fix the problem
Time to fix the problem
46 A lasting fix
48 How the proposals stack up
50 Three key questions
52 Explanations
1
Social Security
in a nutshell
3
................
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