New Proposal Aims to Strengthen Social Security by Limiting Retirement Plan Tax Benefits

Economists Andrew Biggs and Alicia Munnell propose reducing tax incentives for retirement savings to fund Social Security, sparking debate.

A controversial proposal by economists Andrew Biggs and Alicia Munnell suggests limiting tax preferences for retirement savings plans to bolster Social Security funding.
The plan, which aims to address Social Security's projected insolvency by 2033, has received criticism from various think tanks and financial experts.
Critics argue that reducing tax benefits could discourage retirement savings, potentially harming future financial stability for individuals.
Supporters believe the proposal could provide an immediate solution to Social Security's funding shortfall, ensuring its availability for future retirees.
The debate highlights the challenge of balancing immediate funding needs for Social Security with the long-term goal of encouraging retirement savings.