Every taxpayer funds Social Security through the taxes they pay so that they can receive its benefits when they retire. Most American families use their 401(k) to support them during financial difficulties, with personal savings, IRAs, and Social Security used after retirement.
According to a report, in 1985, about 80 percent of employees depended on their pension to fund their retirement. Now, less than a third do so due to employer contributions to savings plans lessening, thus not providing retirement support.
A reduction in Social Security has been proposed by President Obama but has seen opposition from taxpayers, labor unions, and the American Association of Retired Persons (AARP). Even though the Republicans accepted the proposal as an opportunity to bring down federal spending, they do not consider it an option that can be implemented as is.
The Chained Consumer Price Index for All Urban Consumers or “Chained CPI” for short was proposed in the President’s latest budget as a way to index spending and taxes, including Social Security, to the rate of inflation, meaning benefits would increase at a slower pace than they do now. The Obama proposal provides protection to seniors with low-income. It includes food stamps, children’s nutrition programs, and benefits to the disabled and low income retirees’.
Some debate that the proposal must be tweaked to give fewer Social Security benefits to the rich. At present, the proposal is open for discussion. It will be interesting to see what changes each political party, groups, and individual taxpayers propose to cut down government spending and protect the social safety net.