A business group of top executives on Wednesday proposed reforms to Social Security and Medicare that would raise the enrollment age for both programs to 70 but not raise Social Security taxes paid by upper-income Americans.
The Business Roundtable, which represents more than 200 chief executives from some of the largest U.S. corporations, also urged Congress to add a “premium support” mechanism to Medicare, peg Social Security cost-of-living adjustments to a lower inflation gauge and raise Medicare charges for wealthier beneficiaries.
This strategy for “modernizing and protecting our social safety net” would save $300 billion in Medicare spending over the next 10 years, make Social Security solvent for 75 years and help foster stronger economic growth, the group estimated.
The proposals come as President Barack Obama and Congress prepare for an intensive new round of deficit-reduction talks. Safety net programs including Social Security and Medicare are likely to take center stage.
The CEOs intend to pitch their ideas to the White House and to congressional officials.
“We are calling on President Obama and Congress to look at our plan and enact a package of gradual changes that will provide economic and personal security for generations to come,” said Gary Loveman, CEO of casino and hotel company Caesars Entertainment Corp (CZR.O).
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