OPINION:
The Congressional Budget Office reports that the Social Security trust fund will run out of money in 2032 (“Social Security to go broke in 10 years, forcing Washington’s hand on retiree crisis,” web, Feb. 20).
You can mark my words that in the next decade, the government will solve this debacle in the following way:
(1) The cap on wages subject to the contribution rate, which stands at $160,200, will be eliminated in much the same way the Medicare cap on wages was eliminated in 1993.
(2) The OASDI contribution rate, which has stood at 12.4% since 1990, will not be increased for most wage earners. However, an additional rate will be applied in much the same way the Medicare rate was increased by an additional 0.9% for high-income earners in 2013.
(3) Social Security benefits will be means-tested. If you receive a pension or have a sizable nest egg after you retire, your Social Security benefits will be taxed. In the end, the government will be able to claim that it still paid you your full benefits, but if you have other sources of retirement income, it will tax back a significant portion of them.
PATRICK McGINN
California, Maryland
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