Focus on Expenses
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Restructure Social Security: Variables To Make the Program Financially Break-Even for the Long-Term
Mathematical Illustrations* Slide 257-259 1) Retirement age — increase it to 73, from 67? or 2) Social Security benefits — decrease them by 12%? or
3) Social Security tax rate — increase it by 2 percentage points?
Policy Options Slide 261-267 1) Combination of some / all mathematical illustrations above? and/or
2) Consider / implement CBO’s various policy options on Social Security’s tax rates / taxable payroll / initial benefit formulas / cost-of-living adjustment... (July 2010)**? and/or
3) Consider / implement National Commission on Fiscal Responsibility and Reform’s policy proposals (November 2010)***?
Note: *For mathematical illustrations, we simply calculate how big a revenue increase AND / OR expense decrease each major
entitlement program needs to reach financial break-even. These caiculations are merely mechanical illustrations and are not meant
to portray realistic solutions. **See: CBO, “Social Security Options 2010.”
KP] ***See: National Commission on Fiscal Responsibility and Reform, CoChairs’ Proposal, 11.10.10 Draft Document.
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