Social Security revamp

From Pensions and Investments:

Within the next few years, Barack Obama is likely to fulfill his pledge to try to revamp Social Security despite the political pitfalls involved, financial experts said. That most likely means a package of tax increases and benefit reductions that would fall most heavily on upper-income wage earners.

“Obama should learn from Bush’s experience that all ideas should be on the table and basic principles should be followed,” said David Madland, director of the American Worker Project at the liberal-leaning think tank Center for American Progress, Washington.

Social Security benefits will exceed payroll tax revenue starting in 2017, although the system’s trust fund can cover scheduled benefits until about 2041. The U.S. would have to set aside $4.3 trillion today to cover the deficit expected to accumulate in the next 75 years.

Getting any type of reform that limits benefits will be very difficult if not impossible. The boomers are the largest voice in terms of votes...it would be suicide to go up against them.

Social Security is a mess and will definitely go insolvent if we do not make drastic changes. But its a tiny problems compared to Medicaid.