3/05/14 – Another Way to Do the Math for Social Security Reform (New York Times)

Social Security is a hot button political issue, but there is actually more agreement on the matter than might meet the eye. Consider a potential Social Security reform that increases benefits for low income retirees and raises taxes on workers with relatively high incomes. This sounds a lot like what Democratic members of Congress might favor.

Now compare this to an alternative that maintains current taxes on the rich but lowers their benefits, while again raising benefits for those with low incomes. In broad strokes, this is the Republican proposal. It turns out that those are the same, once assessed from a perspective that looks at the net of lifetime contributions and benefits. Too bad, though, that President Obama, who once upon a time spoke about making tough decisions to ensure the sustainability of vital entitlement programs such as Social Security, is stepping back from the issue.

Read the full article at the New York Times.