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Show THE NATIONAL ENTERPRISE, SEPTEMBER 7, 1977 9 Social Security in trouble; reform necessary Despite the fact the federal Social Security tax has multiplied 32 times since 1949 and additional increases are scheduled for 1978 and subsequent years, the program is in deep trouble, says the Utah Foundation, a private tax research agency. During the past several years. Social Security outlays have exceeded re- ceipts, the Foundation says, and the systems limited reserves are rapidly being depleted. It contends if no action is taken, the Social Security trust fund will be completely exhausted by the early 1980's. Additionally, the Foundation emphasizes a larger and probably weight ier problem looms further down the road. Under present law. it says, future Social Security benefit obligations will escalate rapidly, and financial problems of gigantic proprotions will occur during the next cend tury when the present workers and their families. Presently, the unfunded liability of the system amounts to between $3 and $4 trillion, or about $16,000 for every man, woman, and child residing in the United Sates. The Foundation points to the following as major factors in the present Social Security crisis: out-size- crop of younger workers approaches retirement age. Foundations analysts point out the federal Social Security program differs from most privately-funderetirement systems in that the obligations arc not re- 1. to raise benefits and forego necessary tax hikes in the past often were based on political rather than valid financial considerations. 2. Inflation has risen much faster than was envisioned a few years ago. 3. High unemployment in recent years raised costs and reduced revenues. d cognized Decisions and actuarily funded as they occur. Taxes collected from present workers are used to pay benefits disbursed to currently retired and disabled in the flaw Social Security law provides 4 . A double indexing for inflation. Unless corrected, this will allow many individuals to retire in the future wiht more money than they earned while working. Changes in the population makeup are resulting in a situation whre there are fewer workers supporting a growing number of 5 retirees. By the year 2050. Social Security experts preSocial dict Security will equal expenditures 28.6 percent of taxable payrolls. Since the present law calls for a combined employer-employe- tax e rate of only 11.9 percent, the program deficit will amount to 16.7 percent of taxable payrolls. e To solve the problem and elimie nate the crisis, the Foundation examined a short-rang- HIVE revis- ions to the Social Security program. Included among them arc the following: RONEO-VICKERL-2- First Continental Life Group and First Continental Life & Accident Company of Houston, Texas gained controlling interest of Ideal National Life Insurance Company under terms of a $13 per share tender S 00 r offer. Ideal National will continue its home office in Salt Lake City, according to .J.W. Smelley, president of BEEHIVE AUDIO VISUAL PHOTOGRAPHIC CORP. Supplying Your Audio Visual ond Photographic Needs EAST SO. TEMPLE SALT LAKE CITY. UTAH S41 10 PHONE 531-147- First Continental. First Continental offered to purchase all the outstanding shares of Ideal National on July 29, 1977 at the $13 cash price. First Continental has acquired approximately 300,000 4 shares of an outstanding 489,952 said. shares, Smelley Ideal National was reorganized with Salt Lake City attorney, W. Eugene Hansen named as chairman of the board and Smelley as president. Smelley is also president of both First Con RHat your business been paying expnsive felt monthly time-sharin- costs because you g youcouldnnitloryouownjomputerj PHaoumallbusiness gone without the" services of a computer because you thought the cost prohibitiveTor the procedures too hard to leam'LWE VE.GO'LGREA'L.NEWS featuresWaynew jhegComputerRoom generation of computers just right for small. businesseslMIcro-computerslcanlhand- le sales analysis, and general, accounting And .the cost is even less than most TetTThe.Computef Room introduce you to tlme-sharlng- H sales j ourJLnewgeneratlonconceptoU education! ATsma(lcomputer servlcejand, could be youicompany's big itepjorwardj (3455 South Wl Jnpt San Lake Ct: utah S411S I PHONE, (01 MS-41 31 ij . 6. Utilize general re venues from the U.S. Treasury to subsidize all or part of the anticipated deficits in the system. 7. Begin taxing Social Security benefits. 8. Require a means test as a condition for receiving Social Security benefits. Natl complete SPIRIT DUPLICATOR 60 Raise the taxes used to support the program. 5. Reduce or scale down promised benefit payments. 4 Tender offer for Ideal NEW STANDARDS in the Audio Visual Field ELM0 16 CL A 16mm SOUND PROJECTOR g long-rang- number of suggested y) ('la Eliminate the present provision which allows of the double-indexinIf this benefits for inflation. action were taken, the projected deficit over the next 75 years could be reduced by 46 percent. 2. Raise the standard retirement age from 65 to 68 or some other figure. 3 . Expand coverage to include federal employees and some state and lcoal employees who are presently exempt from paying Social Security taxes. 1. tinental Life Group, a holding company and the wholly owned First Continental Life Accident Insurance Co. He presently is serving as president of the National Association of Life Insurance Companies. Douglas II . Brown was named executive vice president. He has served as financial vice president of Ideal National for several years. Ideal National is the states third largest insur- ance company with assets in excess of $20 million, about 3700 stockholders and 7,200 policy holders. The company was organized in 1957. With the acquisition. First Continental has insurance in force in excess of $1 billion; assets in excess of $50 million and capital and surplus in excess of $6 million, Mr. Hansen reported. Realtors post new record Realtors last week enjoyed their busiest seven days of the year, according to figures compiled by the Salt Lake Board of Realtors. During the week ending Sept. 2, total real estate transactions weighed in at $14.9 million, nearly 40 percent higher than the week prior when sales totaled $10.5 million. The largest increase came in the single family residential totals, rising almost $4 million from week ago levels to finish at $12.97 million on 284 units. Multiple unit properties racked up the largest percentage gain, increasing to $1.2 million from the previous weeks $492,000. |