The Current System
Social Security began in 1935 to provide benefits to workers and their family members due to retirement, disability or death. It is attributed to be a major factor why the poverty rate in the US steeply declined during the last half century. Social Security is funded by the Federal Insurance Contributions Act (FICA) tax which is independent of federal income taxes. Workers and employees match equal amounts of the flat rate tax, currently 12.4% of each worker's wages. The funds are used immediately to provide for the obligations of current beneficiaries. The amount of benefits to workers depends upon their earnings during the course of their career as well as adjustments for inflation. Any surplus amount in excess of current obligations is invested in US Treasury securities.
In 1983, largely as a concern of the impending retirement of baby boomers, Social Security laws were altered to accommodate the influx of beneficiaries. The changes made were......

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Title: Social Security Reform
Approximate Word Count: 3017
Approximate Pages: 13 (250 words per double-spaced page)

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