Social Security's Grim Reality: The Most Popular Solution, Taxing the Rich, Won't Fix the Problem
Taxing the well-to-do buys Social Security time, but it doesn’t come close to resolving its funding shortfall.
Overview
In July, more than 71 million traditional beneficiaries received a Social Security benefit. For many of these individuals, especially retirees, Social Security income is indispensable. Yet this foundational retirement program for our aging workforce is floundering.
Although Social Security is in no danger of going bankrupt or halting benefits, the program's existing payout schedule is at risk of sweeping benefit cuts in as little as six years.
Details
The popular solution to "fix" Social Security, which I'll explain in detail shortly, is to tax the rich and ensure they pay their fair share. But the most popular solution to a problem isn't always the best one. As you're about to see, it'll take a lot more than opening the wallets of the well-to-do a bit wider to resolve Social Security's funding shortfall.
Source
Originally published at www.fool.com.
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