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Posts Tagged ‘taxes’

Managing Social Security Reform, Without Affecting Disability Claims

Tuesday, May 3rd, 2011

According to the interim chairwoman of the Democratic National Committee, the Social Security reform movement is an awakening, so to speak, for the majority of Americans who are concerned about the budget priorities of the Republican Party. Donna Brazile said that the attempt by Republicans to cut the deficit by making Social Security budget cuts is hurtful to seniors and middle-class Americans depending on their disability benefits.

However, the budget dilemma cannot be ignored. Postponing decisions on Social Security while it is manageable may become harder to solve once the program is in jeopardy, according to the Daily News Pulse. It may be easier to collect taxes on more of high earners’ incomes while most of the baby boom generation is still working. The sooner the taxes go up on the rich, the more money will be brought in, according to some experts. What’s more, increasing taxes and lowering benefits for the affluent will be easier for the general public to accept.

The Democrats have recently suggested raising the retirement age. It seems that everything else goes up around us, including gas. Increasing the federal gasoline tax by 25 cents a gallon would generate $291 billion from 2012 to 2021. Increasing the retirement age from 62 and 66 to 64 and 70 may also generate money into the Social Security trust fund, which would mean savings of about $264 billion in benefits.

According to the National Stroke Association’s CEO James Baranski, individuals collecting disability claims in the world of Social Security face a lot of challenges. The process of applying for disability claims is difficult, cutting costs in the program could directly affect such claimants as stroke victims. Often, stroke victims are working with a deficit while trying to meet deadlines and fulfill all the application requirements.

Will Baby Boomers Affect Social Security?

Monday, April 25th, 2011

According to the Washington Post, a stampede of Baby Boomers will start in 2011, which means they will soon be tapping Social Security fund benefits. The first wave of Baby Boomers begins turning 65 this year. Any individual working and paying Social Security taxes can earn up to four credits per year based on net income. Social Security is more than a retirement program, it also offers Baby Boomers and others disability benefits in case they are left unable to work.

January 2011 officially started the Era of the Golden Boomers, a term coined for the generation that is set to retire. A flood of individuals tapping into the Social Security benefits could deplete the fund, critics argue. President Obama has suggested raising the retirement age. He is not the only one pushing for such a reform, GOP senators have asked the retirement age be pushed to 70.

Senators Lindsey Graham, Rand Paul and Mike Lee promoted a proposal that would gradually raise the retirement age from 67 to 70, and would not affect individuals currently age 65 or older. The Senators say that such a change would put the entitlement program on a long-term path to solvency without raising taxes. Social Security’s solvency issues could affect funds for individuals seeking Social Security Disability Insurance benefits. Medical reasons or work injuries can affect an individual’s working status, resulting in their inability to hold a job. Disabled individuals do have an option, the SSDI program provides monthly payments to those who cannot go out and earn a living due to a life-affecting disability.