Another Attempt at Social Security Reform
Popular discussions of Social Security often focus on competing plans–this person’s approach to Social Security would change x, y, and z; that person’s approach would change x or y but not z, and so on. This policy brief focuses on a broader strategy. One can imagine several ways to fill this funding gap: raise payroll taxes (or other taxes); cut benefit levels; have people work longer careers before receiving benefits; have people save more to supplement Social Security; permit people to invest their funds differently and perhaps get a higher rate of return. This brief discusses the pros and cons of each approach, and sensible ways of implementing each and argues for a composite strategy that uses elements of all of the approaches.