President Favors Raising More Revenue for Social Security
To keep Social Security benefits intact for the next generation, President Obama said recently that he favors raising more revenue rather than cutting benefits or raising the age of retirement.
In a town hall meeting, the President said that he thought increasing the amount of income subject to Social Security taxes above the current level of $106,800 might be the best approach, although he did not rule out other options.
A report issued two months ago said that Social Security would likely exhaust its reserves by 2037. President Obama appointed a fiscal commission to weigh options for Social Security, including limiting benefits or raising the age of retirement. The bipartisan commission is supposed to make its recommendations in December on Social Security reform as well as reducing the federal budget deficit.
The Social Security Administration has announced that for the second year in a row there will be no cost-of-living increase for benefits in 2011. This is primarily due to the current low rate of inflation.
President Obama said he would ask Congress to approve a $250 rebate for those currently on Social Security as an “economic recovery payment.” Seniors, veterans and those with disabilities would be eligible for the one-time payment if it is approved.
