Generating More Revenue for Social Security Favored by White House

8:15 am Uncategorized

At a town hall meeting last week, President Obama said that generating more revenue to keep Social Security intact for the next generation is probably better than raising the age of retirement or cutting benefits.

Although he did not rule out other options, the President said he believes increasing the amount of income subject to Social Security taxes above the current level of $106,800 may be the best approach.

Earlier this year, a government report forecasted that Social Security would likely deplete its reserves by 2037.  Last week, the Social Security Administration announced that because inflation remains low, there would be no cost-of-living (COLA) increase for Social Security benefits recipients next year.  This is the second year in a row without a COLA increase.

The White House called for Congress to approve another round of economic recovery payments to Social Security recipients, including seniors, veterans and the disabled.  Approximately 56 million Americans would be eligible for the one-time payment of $250 at a cost of $13 billion.

A fiscal policy commission appointed by President Obama is in the process of weighing options for Social Security, including limiting benefits or raising the age of retirement.  The bipartisan commission is scheduled to make its recommendations in December.

Don’t wait until December to hear our recommendations for your estate tax planning.  Contact our California estate planning law firm today.

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