More Inflation Fallout: Social Security Insolvency | Eastern North Carolina Now | Large COLA this year caused by inflation will likely mean Social Security tax hikes or benefit cuts in the near future

Coronavirus Disease 2019 (COVID-19)
    Publisher's Note: This post appears here courtesy of the John Locke Foundation. The author of this post is Brian Balfour.

    Seniors on Social Security will receive an 8.7% cost of living adjustment (COLA) in their benefits next year, in an attempt to keep benefits on pace with inflation.

    While this is certainly welcome news for seniors in the short term, it also means benefit cuts and/or tax hikes will come even sooner if the program is going to avoid insolvency.

    From the Washington Examiner:

    Even before this large COLA increase, Social Security was projected to run out of money to pay scheduled benefits in 2034. ... Paying out COLAs that exceed workers' wage gains (and Social Security's payroll-tax revenues) will cause Social Security's trust fund to run dry sooner, subjecting more people to benefit cuts, and beginning at an earlier date. ... According to the Social Security trustees, maintaining current benefit levels would require an immediate payroll-tax increase from 12.4% to 15.8%, which would translate into an extra $2,400 in Social Security taxes per year and $11,200 in total Social Security taxes for the median household with $70,800 in earnings.

    Aside from, or in addition to, tax hikes to shore up the broke Social Security system, there would be a reduction in benefits or an older age eligibility requirement.

    In sum, not only are working people getting hammered today by runaway inflation, they'll be paying thousands more in Social Security taxes and/or receiving smaller benefits when - or if - they retire.

    The Covid hysterics thought they could paper over the devastating impacts of shutting down large swaths of the economy by printing an unprecedented amount of money.

    We're now feeling the pain of that decision, and it's just beginning. Tens of millions of people will be suffering for decades from multiple waves of financial agony:

  • Cost of living today rising faster than wages, especially devastating low-income households
  • Higher payroll taxes during future working years to help shore up a Social Security system made more broke due to the aggressive COLA compelled by the rising cost of living
  • Lower Social Security benefits when they retire due to the heightened fiscal distress of the bankrupt SS system

    How many Americans will be thrown into generational poverty because of "two weeks to slow the spread?"


poll#166
With the Midterm Elections less than one week away: What do you consider the top issues that you will be voting on to be corrected by your better representation?
  Education
  Crime
  Big Government getting Bigger
  Biden /Democrat controlled Spike in Energy Cost
  Inflation created by Legislation of Majority in Power
  Gender Reassignment
  Corrupted Bureaucratic /Service (DOJ, FBI, etc.) Institutions
  Abortion
  Discredited Legacy Media
  Ending the Corruption of Dishonest Politicians
  Corruptive Influence of Social Media
  Wide Open Southern Border
189 total vote(s)     What's your Opinion?

Go Back


Leave a Guest Comment

Your Name or Alias
Your Email Address ( your email address will not be published)
Enter Your Comment ( no code or urls allowed, text only please )




Financial Data Dump: Federal Elections Third Quarter Financial Breakdown Economic Truths, A Business Perspective, John Locke Foundation Guest Editorial, Editorials, Business, Op-Ed & Politics Don’t Smother Income Share Agreements in their Crib


HbAD0

Latest Op-Ed & Politics

We trust our readers to make their own conclusions. We'd love to hear what you think
A spokesman for Santa's Workshop today announced the organization's latest advance in their ongoing efforts to determine who's naughty and who's nice
demands federal government pays it to all, costing billions
Vice President Kamala Harris is spearheading a White House initiative to electrify the nation’s school buses, the administration announced Wednesday.
politization of leadership is biggest public concern
Twitter CEO Elon Musk said Monday that he will soon be releasing files on how the social media platform has engaged in suppressing free speech.
In the age of wokeness, ideological (re)education trumps mission-preparedness.
A new book alleges that after Ted Kennedy left his car and his passenger, Mary Jo Kopechne, in a pond off of Chappaquiddick Island, where Kopechne drowned, he returned to the party they had attended and told his close friends he wanted to say Kopechne was driving the car.
Hawaii’s largest active volcano began erupting Sunday night, with lava flow warnings issued to the surrounding area.

HbAD1

Apple CEO Tim Cook confirmed this morning that he's prepared to remove the Twitter app from the App Store but that he's waiting for orders from CCP President Xi before he makes a move.
A wave of Twitter users began impersonating government officials and major corporations after Elon Musk introduced a new scheme for verifying users on the platform.
In a dramatic ruling issued just days before midterm elections, the North Carolina Supreme Court upheld a lower court’s ruling and ordered the transfer of millions of dollars to pay for a school improvement plan designed to ensure North Carolina’s school children receive a sound basic education
Chest reconstruction surgeries performed on minors across the United States increased by approximately 400% during a three-year span, according to a new report.
bill would subsidize MSM, leave out conservative media
Christine McVie, the English singer-songwriter who helped launch the rock band Fleetwood Mac into international fame, has died. She was 79.
Research suggests that certain octopuses deliberately throw objects like silt, sand, and shells at other octopuses.
Balenciaga is facing a wave of online criticism after a MyPillow pillow was spotted in the background of one of the company's photo shoots for its winter collection. The CEO of MyPillow Mike Lindell is known for his strong support of Donald Trump.

HbAD2

 
Back to Top