As Social Security marks its 89th anniversary, the program's future remains a crucial topic of discussion.
Jennifer Carlson, state director for AARP Ohio, led a community conversation to commemorate the event, focusing on the challenges facing Social Security and the importance of protecting it for millions of Americans. She said the program remains vital for older Americans.
"Ninety-four percent of Ohio's voters age 50 and older are more likely to vote for a candidate who will work to protect Social Security," Carlson reported. "From our viewpoint, if you pay into it and earn through a lifetime of hard work, you should count on it."
During the event, Carlson emphasized the financial challenges facing Social Security, particularly the risk of a 20% benefit cut if Congress does not act. Panelists discussed potential solutions, such as eliminating the payroll tax cap and improving the cost-of-living adjustment formula to ensure the program's long-term solvency.
Carlson argued it is important for the community to stay involved in securing Social Security's future and AARP is committed to helping older Americans navigate their options.
Max Richtmam, president and CEO of the National Committee to Preserve Social Security and Medicare, sought to dispel common myths surrounding Social Security. Richtman addressed one of the most common misconceptions, which suggests Social Security is broke.
"That is untrue, totally false," Richtman stressed. "When people hear that, they think, 'Well, I may as well not support the program because it's going to be broke.' But that's simply not the case."
Richtman explained while the surplus in Social Security's trust fund is being drawn down, it will never be completely depleted unless the country faces 100% unemployment. He also rebutted claims that undocumented workers are draining the system. He pointed out they also contribute to Social Security, but will never collect benefits if they lack a valid Social Security number.
Romina Boccia, director of federal budget and entitlement policy at the Cato Institute, addressed the economic implications of potential solutions and warned raising payroll taxes to avoid benefit cuts could impose a burden on younger workers.
"A U.S. worker earning about $60,000 a year would end up paying more than $10,000 in taxes for to keep the program funded as it is currently," Boccia outlined. "That would be a more than $3,000 tax increase for someone making a fairly modest income."
The event concluded with a clear message: Social Security remains a cornerstone of financial security for millions but its future depends on informed public discourse and responsible political action. A future event is planned in Sioux Falls, South Dakota.
Disclosure: AARP Ohio contributes to our fund for reporting on Budget Policy & Priorities, Health Issues, and Senior Issues. If you would like to help support news in the public interest,
click here.
get more stories like this via email
A new survey of public company audit firms reveals businesses are concerned the upcoming election could affect their financial performance.
The Center for Audit Quality found more than 60% of roughly 1,200 audit partners surveyed worry about potential disruptions.
Julie Bell Lindsay, CEO of the center, said few companies are adjusting their business strategies.
"It suggests that while businesses expect some market turbulence and some uncertainty, they feel equipped to navigate through that," Lindsay explained.
Delta Air Lines recently said election-related uncertainty would affect its fourth-quarter revenue as consumers hold off on discretionary spending. Lindsay added geopolitical concerns also remain a top risk factor for businesses, as conflicts in Ukraine and the Middle East continue to affect the global economy.
Despite ongoing resilience, audit partners' outlook for the economy over the next year is only neutral, with most believing a recession is likely on the horizon. Lindsay noted audit partners are watching for potential indicators, including recent federal rate cuts, a possible government shutdown and a fluctuating labor market.
"They also continue to see that inflation could be an ongoing concern over the next twelve months," Lindsay reported. "I will say that the audit partners in our surveys have been pretty accurately predicting what inflation is going to do."
Lindsay emphasized top priorities for businesses in 2025 remain cost management, improved financial performance and growth. She said labor shortages are no longer a priority among economic risks as employers seek to upskill workers and increase compensation. Still, layoffs and decreasing workplace flexibility remain top strategies for companies to improve their bottom line.
get more stories like this via email
Despite Indiana's recent high-profile business deals, the state's economic fundamentals are lagging, with declining income and education levels posing significant challenges.
Experts argue deeper investments in education and infrastructure are needed for sustainable growth.
Michael Hicks, director of the Center for Business and Economic Research at Ball State University, noted some troubling figures.
"The share of adults with a college degree relative to the country having slipped," Hicks noted. "We see our per capita income relative to the country has slipped substantially, two percentage points, which is sort of a shocking three-decade change in two decades."
Although state officials pointed to low unemployment and rising capital investments as proof of success, Hicks contended without a focus on education and infrastructure, Indiana's long-term economic outlook remains uncertain.
State officials highlighted new projects such as a $3.2 million investment in Kokomo by Stellantis and Samsung SD designed to expand electric vehicle battery manufacturing operations in Indiana as signs of progress. However, Hicks warned the announcements do not address deeper economic issues.
"The numbers they're sharing are just measurements that they have working through IEDC (the Indiana Economic Development Corporation)," Hicks observed. "It has nothing to do with the actual amount of capital that's flowing into the state. That's lower than it has been in most years. So, there's nothing fabulous happening now that is anything other than a press release."
Hicks believes Indiana should prioritize education, environmental policies and regulatory improvements to create sustainable growth.
get more stories like this via email
Just as inflation starts to ease, Mississippi small businesses face another looming threat: the potential expiration of the small business deduction.
It is also called the Qualified Business Income deduction and if Congress does not renew it, it could affect nearly 266,000 small businesses in Mississippi, which employ more than 430,000 people.
Leah Long, Mississippi state director for the National Federation of Independent Business, said the Main Street Tax Certainty Act, which has bipartisan support, is set to expire in 2025. It is the law allowing small companies to deduct up to 20% of their qualified business income.
"It's a massive hit to their business, because they rely on that," Long stressed. "They're also facing issues like inflation, cost pressure and the uncertainty of the economy. So right now, the biggest focus is on that and getting the congressional members to sign on to support it, to reinstate it and make it permanent."
The Federation's August jobs report found 40% of small business owners had job openings they could not fill in August, up two percentage points from July.
Long pointed out if no action is taken by Congress, it would amount to a big tax hike for nine out of 10 small businesses nationwide, compromising their ability to grow and hire workers.
"When small businesses are doing well and they have more money, they're able to invest more into their business, they're available to best invest more into the economy and also in their communities," Long explained. "These small business owners are the ones that sponsor your kids' T-ball team."
She noted while measures like the Inflation Reduction Act have provided some aid, passing bills like the Main Street Tax Certainty Act will be crucial to support Mississippi business owners.
get more stories like this via email