Gets attacked by Democrat for it. What did Christie suugest:
raising the retirement age to 69 and eliminating benefits for those making more than $2000,000 per year.
Democratic U.S. Rep. Bill Pascrell Jr., the only New Jersey
representative on the House Ways and Means Committee, on Tuesday
criticized Christie's proposals to raise the retirement age to 69
and eliminating benefits for those earning more than $200,000. The
current retirement age is 67 for those born in 1960 and later.
"One of the most unpopular governors in the country is unveiling what
will soon become one of the most unpopular entitlement reform plans,"
said Pascrell (D-9th Dist.). "Governor Christie has decided that the
only way to rein in entitlement spending is on the backs of seniors.
This couldn't be more wrong."
The Democrats spend so much time talking to their billionaire campaign contributors that they don't realize that a person making $2000,000/year doesn't have a very strong argument for government assistance. Whatever happened to the Democratic talking point of: "From each according to his abilities; to each according to his needs"?
Well, though such policies may play well with the steal-from-the-rich crowd, I seriously doubt that the policies would make a significant fiscal impact. To me, they seem simply typical political pandering.
ReplyDeleteRaising the retirement age is probably a good idea, and it is hardly new—every proposed SS "reform" includes that feature.
ReplyDeleteWhile withholding SS benefits to those with higher incomes (an idea appropriate for a Socialist such as Christie) is probably popular, I really doubt that it would have any serious fiscal impact.
I would be curious to know what fraction of SS payments go to high income people. I am not in that category (yet) but I do not get the impression I am unusual.
ReplyDeleteThe solution to SS is:
ReplyDelete1) For very 2 (or 3) years that pass raise the retirement age by 1 year (this means existing recipients will not lose benefits and future recipients will be able to plan).
2) Cut off everyone under 20 from paying into the system, give them a market based plan. That plan is also how government politicians and all civil servants retirement packages are invested.
In 20 years we can start downsizing the SS administration, and in 60 we can shutter it.
This is similar to what Bush recommended after the 2004 election and the Democrats attacked him for. Good ideas are too dangerous in a democracy.
ReplyDeleteBilly has it right though, the program needs to be phased out and this can be done from a fixed date as Billy suggests or it can be spread out to let the middle age group keep what they have in the system while funneling their remaining years contributions into the IRA. See also the Chilean model.
ReplyDeleteYes, the Dems will call it "tossing grandma out into the street" but what do we expect of them.
2017 might be a good time to try this while the lefts credibility is at an ebb.