Changes

==Reform==

==Reform==

Social Security is going bankrupt. The U.S. federal government's largest spending program, accounting for nearly 22 percent of all federal spending, faces irresistible demographic and fiscal pressures that threaten the future retirement security of today's young workers. According to the 2003 report of the Social Security system's Board of Trustees, in 2018, just 14 years from now, the Social Security system will begin to run a deficit. That is, it will begin to spend more on benefits than it brings in through taxes. Anyone who has ever run a business--or balanced a checkbook--understands that when you are spending more than you bring in, something has to give--you need to start either earning more money or spending less to keep things balanced. For Social Security, that means either higher taxes or lower benefits.

Social Security is going bankrupt.{{fact}} The U.S. federal government's largest spending program, accounting for nearly 22 percent of all federal spending, faces irresistible demographic and fiscal pressures that threaten the future retirement security of today's young workers.{{fact}} According to the 2003 report of the Social Security system's Board of Trustees, in 2018, just 14 years from now, the Social Security system will begin to run a deficit.{{fact}} That is, it will begin to spend more on benefits than it brings in through taxes. Anyone who has ever run a business--or balanced a checkbook--understands that when you are spending more than you bring in, something has to give--you need to start either earning more money or spending less to keep things balanced. For Social Security, that means either higher taxes or lower benefits.{{fact}}

But even if Social Security's financial difficulties could be fixed by raising taxes or cutting benefits, the system would still need to be reformed because it is a bad deal for most Americans. Social Security simply costs too much and pays too little. Social Security's rate of return on payroll taxes is dismal (about 2 percent) and declining. Workers deserve a retirement system that will make the most of their money.

Even if Social Security's financial difficulties could be fixed by raising taxes or cutting benefits, the system would still need to be reformed. Social Security simply costs too much and pays too little. Social Security's rate of return on payroll taxes is dismal (about 2 percent) and declining. Workers deserve a retirement system that will make the most of their money.

Social Security Reform would lead to an increase in national saving, with hundreds of billions of dollars invested through individual accounts every year. Those investments, in turn, would substantially increase national investment, productivity, wages, jobs, and overall economic growth. In addition, Social Security Reform would amount to an effective cut in payroll taxes, boosting productivity and employment. Martin Feldstein, of Harvard University, estimates that modernizing Social Security has a value of $10-$20 trillion to the U.S. economy and would permanently increase our GDP by 5 percent. That would translate into at least one million new jobs and an increase in annual income of $5,000 for a family of four.

Social Security Reform would lead to an increase in national saving, with hundreds of billions of dollars invested through individual accounts every year.{{fact}} Those investments, in turn, would substantially increase national investment, productivity, wages, jobs, and overall economic growth.{{fact}} In addition, Social Security Reform would amount to an effective cut in payroll taxes, boosting productivity and employment.{{fact}} Martin Feldstein, of Harvard University, estimates that modernizing Social Security has a value of $10-$20 trillion to the U.S. economy and would permanently increase our GDP by 5 percent. That would translate into at least one million new jobs and an increase in annual income of $5,000 for a family of four.{{fact}}

==Pro's and cons of social security==

==Pro's and cons of social security==