After a year of discussion with politicians from both sides of the aisle, Treasury Secretary Henry Paulson claims that there is overwhelming bi-partisan support to reform Social Security. Apparently, policymakers are recognizing the seriousness of the problem and agree that necessary action should take place. Paulson believes that Social Security has been an issue of partisan politics, with Democrats and Republicans debating the details rather than the problem, inevitably delaying any compromise that could lead to reform.
It is estimated that by the year 2017 Social Security will be paying out more in benefits than it is collecting in payroll taxes. The longer Congress waits to address the issue, the more it is expected that taxes will increase, and the promised benefits through the system will decrease.
Paulson’s mission has been to revitalize the Social Security debate by focusing on areas of bi-partisan agreement. Drawing from his findings, the Treasury Department plans to release issue papers discussing the problems and potential solutions over the next three months to further ignite discussion of reforms. For more information, please read “Treasury Rekindles Social Security Debate,” by Michael Fletcher, Washington Post.
Courtney Haynes | Hope Street Group Fellow
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