1983 Reform: Social Security Benefits Were Cut by 19 Percent

1983 Reform: Social Security Benefits Were Cut by 19 Percent

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note:  looks like history going to repeat

First, the 1983 reforms didn’t only reduce benefits; they also increased taxes, by covering newly hired federal workers and non-profit associations, accelerating tax increases already on the books, prohibiting state/local workers from leaving the system, and so on.

Second, while benefits in any given month will be lower in the future than they would have been under 1983 rules, that doesn’t mean they’d be lower in real terms.

Third, future retirees will live longer than those in the past did, so while they may receive somewhat lower replacement rates than in the past, they’ll collect them over longer retirements.

- See more at: http://healthblog.ncpa.org/1983-reform-social-security-benefits-were-cut-by-19-percent/#sthash.V1wEfI5W.dpuf

First, the 1983 reforms didn’t only reduce benefits; they also increased taxes, by covering newly hired federal workers and non-profit associations, accelerating tax increases already on the books, prohibiting state/local workers from leaving the system, and so on.

Second, while benefits in any given month will be lower in the future than they would have been under 1983 rules, that doesn’t mean they’d be lower in real terms.

Third, future retirees will live longer than those in the past did, so while they may receive somewhat lower replacement rates than in the past, they’ll collect them over longer retirements.

- See more at: http://healthblog.ncpa.org/1983-reform-social-security-benefits-were-cut-by-19-percent/#sthash.V1wEfI5W.dpuf