Everything should be on the table. Assuming the objective is to preserve both programs, you take a look at benefits, revenue, fiscal parameters, etc. It would be like a zero base budgeting system. I can see more means testing and reconfiguration of the benefits. The systems can be made more efficient. Given longer life spans, the age for full benefits could be looked at again. At this point, it is too early to draw any conclusions.
Repeal of payroll taxes is another way of signaling reform. Obama had a 2% employee holiday on SS contributions. Trump wants a holiday on all payroll taxes. It is a very clever way to get the public on his side for entitlement reform in his next term. People will see a major jump in their salaries and employers will have more money to invest or expand. As they say, once you see Paree, how do you keep them on the farm.
Congress will be forced to work together once this becomes a crisis—and it will. Medicare looms on the horizon in about 5 years. Something has to be done. Reagan and Tip O’Neill had to work together to save SS. Hence the phased increase in raising the age for full SS benefits and forcing federal employees to join the system. Medicare already has a means tested premium system.
Shouldn't reform take place before you eliminate the funding?
Trump wants a holiday on all payroll taxes. It is a very clever way to get the public on his side for entitlement reform in his next term.
No, Trump wants to eliminate all payroll taxes in his next term. He said so Saturday night. That's a way for the Democrats to hammer him with the claim he's out to eliminate Social Security. Not a smart way to win an election.
Congress will be forced to work together once this becomes a crisis—and it will.
It's questionable whether they will absent any clear plan from the Administration as a starting point, and Trump has none. And even if they do, history has shown when Congress works together to respond to a crisis it results in lousy legislation. Witness their response to the last two fiscal crisis.
Reagan and Tip O’Neill had to work together to save SS.
Reagan and O'Neill were willing to work together. Trump is no more interested in working with the Democrats as the Democrats are interested in working with Trump.