Deficit Reduction Plan: Solve America’s Debt Problem By Cutting Taxes, Social Security, Medicare and Federal Retirement Benefits

To tackle America’s growing national debt problem, President Obama put together a task force earlier this year to look at options on how to cut government spending, implement tax reform and improve the effectiveness of federal entitlement programs. The deficit reduction commission co-chairs (Erskine Bowles and Alan Simpson) put forward a $3.8 trillion deficit-cutting draft plan that calls for discretionary spending to be cut by $1.4 trillion over 10 years, while mandatory spending – including Social Security, Medicare and Medicaid – would be reduced by $733 billion. Taxes would be raised by $751 billion. More specifically:

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Five Ways to Make Sure You Get the Most Social Security Income at Retirement – And What You Can Do About It Now

It’s hard to believe that Social Security has been in existence for over 75 years. During that time, however, it has become an income staple for many Americans, with nine out of ten people over 65 receiving benefits. Although Social Security provides benefits for other than just retirement income, those over age 65 depend on Social Security for roughly 40 percent of their income. And, nearly 14 percent of Americans aged 65 and over depend on Social Security for 100 percent of their family income.

The average monthly Social Security check for a retired worker is $1,170. Yet, the need for Social Security benefits increases with age. And, with a trend towards longer life expectancies, it makes sense to try and maximize the benefits you will receive from the program. Particularly, if other retirement sources like 401K, IRAs and Real Estate are returning far less than expected.

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Social Security Tax Rate and Withholding – SSI Limits, Coverage, Retirement Earnings and Benefit Base Limit Changes

Updates – See here for the latest COLA increases by year____________ The Social Security Administration has officially released the Social Security and SSI information against the background announcement that there will be no cost-of-living adjustment (COLA) increase next year. The zero COLA adjustment means the monthly Social Security and Supplemental …

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