Social Security should start sending out bigger checks: Democratic Senators

About 42 Democratic senators think that Social Security should start sending out bigger checks. Last month, they voted for a resolution to strengthen social security benefits. Their vote was largely symbolic, but it represented a significant tactical change by liberal wing of the party. It seems that liberals are tired of fighting proposals that would cut benefits to ensure the long-term solvency of the Social Security. Now, they are changing from defense to offense.

Traditional pension plans have everything but vanished in private sector, and people in the United States do not save enough for their life after retirement. According to estimates by Employee Benefit Research Institute, retirement savings of Americans deficit at about $4.1 trillion.

A question that arises is: ‘Why not send Social Security to the rescue?’ There is a problem that Social Security is slowly going broke. It is important to fix the issue and if it is not fixed, beneficiaries could face an estimated 23% benefit cut in 2033. The difference could be closed with a combination of tax increases, benefit cuts and an increase in the retirement age, but Senate Democrats are tired of that debate.

The Senate Democrats want to increase benefits in deficit neutral fashion. More than 12% tax presently does not apply to wages above $118,500. The idea by Democrats has some problems. Currently, if a person pays more taxes then the individual will have higher benefits.

Edward Lorenzen, senior adviser at the Committee for a Responsible Federal Budget, said that he was disappointed by the Democratic resolution. The senior adviser further stated “There was recognition of the need to make the program sustainable while taking care of the most vulnerable retirees and this is moving away from that.”