A Democratic-leaning policy group known as Third Way has released a proposal that offers recommendations for trimming the U.S. federal budget deficit.
Among the set of recommendations are proposed modifications to Social Security:
- Eliminate Social Security benefits entirely for individuals earning $200,000 or more in outside income and couples earning $400,000 or more.
- Begin to reduce Social Security benefits for individual incomes starting at $150,000 and couples with income of $250,000.
- Require individuals earning $50,000 a year and couples receiving $60,000 to pay taxes on 100 percent of their Social Security benefits (the current rules require individuals with $34,000 in outside income and couples with $44,000 to pay taxes on 85 percent of their Social Security benefits).
According to the Third Way proposal:
“Those who should not need Social Security at all should not receive it during their high-income years,”
The Third Way proposal is set to be released after a presidential panel reports on Social Security on December 1.
Source: Bloomberg
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