Social Security needs fixing

Social Security needs fixing

Kansas City Star: It’s time for the country to sober up about how Social Security benefits will be financed in the years ahead.

The official “first baby boomer” applied for retirement benefits this week. Yet there’s still no realistic plan in place for Social Security, despite years of warnings from economists, budget experts and blue-ribbon panels.

President Bush, Congress and the public need to finally start focusing on fixing this crucial federal program. And voters in next year’s elections had better make sure their favored candidates are up to the job.

Social Security reform is made even more difficult by the fact that Medicare also needs extensive repairs.

Years of neglect

Year after year, the trustees who oversee Social Security have warned that the cost of benefits for just the older baby boomers will outstrip revenue from the Social Security (”payroll”) tax. Their current estimate is that this will happen in about a decade.

Some retirement benefits would still be paid. But even some of that money could be taxed away again as Washington struggles to balance the books.

Unless responsible changes are made soon, the government could eventually need to dramatically slash the benefits of future retirees and sharply raise taxes on workers.

This could harm the economy and undermine public support for Social Security and Medicare.

What should be done now?

Curbing government aid for the wealthy would be a good place to start. Affluent Americans can pay for their own prescriptions, for example.

Barring a recession, Washington should balance the budget and start paying down its $9 trillion debt. This will require both spending cuts and additional tax revenue.

Waste, theft and special-interest tax loopholes should, as always, be targeted.

Other measures can be considered as well. The most critical step, though, is to finally get started.