| The Social Security Act of 1935 is among the | | | | people would gain more income. |
| primary acts the United States government is | | | | Another possible solution that could be taken as |
| imposing. The acts main function is to give a | | | | of the moment is to increase the rates of the |
| lifetime reward to workers who have retired by | | | | taxes imposed on present employees. This way |
| the age of 65. That was the time of the Midst of | | | | could somehow ensure that while there is an |
| Depression and where programs regarding social | | | | increasing population, the entire system would not |
| security were then based on. Due to the | | | | necessarily fall apart. Presently, employees pay |
| expansion of these programs, the programs are | | | | taxes after earning $ 90,000 firstly. The |
| considered to be a leading federal program. The | | | | employees are still taxed similarly, since in this |
| funds for these programs demand almost a | | | | way the government is able to increase the cap |
| quarter of the funds in the federal. | | | | rather than having the employees pay a higher |
| For in a long time now, the payments given by | | | | percentage. In this way, the burden in placed on |
| the social security programs were free of tax. | | | | the higher bracket employees rather than those |
| This was the setup since for the most part of | | | | middle class ones. |
| the grantees life, the grantees were paying for | | | | One concern arising presently is that the social |
| their social security record. | | | | security and its benefits are now put at risk. |
| In this case, change has always been a part of | | | | There are retirees now enjoying benefits that |
| our life. Just like for programs in Social Secuirty, it | | | | people in the future would not be able to perhaps |
| has changed over the years and are still subject | | | | enjoy. Currently, it is determined that employees |
| to change. Presently, a part of the payments | | | | now would be getting 25% less of the benefits |
| given by the programs is taxable. There was one | | | | that retirees are enjoying presently. However |
| period where the benefits were almost taxed by | | | | retired grantees are also on the lookout to make |
| 50% and other brackets even reached 85% | | | | sure that even with the booming population, taxes |
| taxable rate. Various measures were tried and | | | | would be reduced so that we could avoid having |
| employed in reducing the tax rates of the | | | | people living underneath the poverty line. |
| payments, however majority of them were futile. | | | | Those who are currently working and paying for |
| Due to the changes, it won’t be a surprise if | | | | their benefits could be assured that in the long run |
| there would come a year where people would | | | | they would be able to enjoy the benefits they |
| pay the benefits of their social security at a very | | | | are saving for now with additional savings for that |
| high rate. This could be partly attributed to | | | | matter. The present situation demands that the |
| increasing population. One important setback that | | | | government find ways to reduce the taxes so as |
| is situation reflects is that because of the | | | | to avoid the conflict that the benefits enjoyed by |
| increasing population, some time in the future | | | | the retirees presently would not be the same as |
| many people would become dependent on the | | | | to the retirees in the future. The changes could |
| social security programs especially the benefits | | | | happen given that bad case social security |
| when the time for their retirements comes. The | | | | programs are now encountering, it would perhaps |
| setback could probably be best solved if the tax | | | | be possible for the government to eventually |
| rates could be lessened by the government. In | | | | lessen the taxes on these benefits and programs. |
| this way, there’s a higher probability that | | | | |