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Way back in 1983, Social Security had less than a year’s worth of solvency, and a bipartisan agreement to place it on sound financial foundation was necessary.
Fortunately, right from the start, Reagan understood that the said federal program is a separately funded program which has nothing to do with problems in the rest of the budget. Subsequently, Reagan together with the then Democratic House Speaker Tip O’Neill worked out on a legislation that would focus on what was needed to protect Social Security for the long run.
Today, the program’s trust fund holds $2.8 trillion in government bonds. These reserves have been collected from the contributions of wage earners for the dedicated purpose of paying social security benefits.
Based on the recent Trustees’ report, Social Security can pay in full swing to beneficiaries until 2033 and beyond that time, it can only pay approximately 75 percent of benefits.
Apparently, this is one of major reasons why many lawmakers today are eyeing on social security cuts as part of the deficit reduction program. Many politicians nowadays have probably forgotten the basic truths, said by a Los Angeles disability lawyer.
The attorney herein likewise believes that social security has a long-term shortfall, but any changes to Social Security should be done as former president Reagan did in 1983. It should be conducted in a balanced and separate measure for the purpose of protecting the program for the long run. Cuts should never be an option to pay for the short fall in the rest of the government’s budget.