Social Security Looks Relatively Untouched In Budget Deal

The proposed budget deal in Congress involves Social Security disability. From the early reports, however, it seems as if the program will not suffer any major setbacks. In fact, the budget deal actually addresses one of the big issues affecting Social Security disability. If reports are true, the new law would allow for the common-sense solution of allowing a reallocation of payroll taxes between disability and retirement. If you are getting disability benefits, this is very good news. It means you are not going to see a 20% reduction in your monthly check.  It is notable that some of the loonier ideas, such as giving everyone the same benefit amount, did not make it into the new law.  One of the best reporters on Social Security, Michael Hiltzik of the L.A. Times believes that Social Security retains its aura of being “the third rail.”  I suspect he is correct.  For now, it looks like Social Security disability will survive more or less in the same form.  That is a good thing for everyone involved.  As for retirement, however, it looks like Congress has been paying attention to a lot of the schemes people have been using to maximize their benefits. The new law does away with at least one of these schemes. I am sure there will be much more said about that once the new law takes effect.