“The Business Roundtable, which represents chief executives of major U.S. companies, proposed shoring up Social Security and Medicare by raising the eligibility age without increasing taxes on income subject to the Social Security payroll tax.
For Social Security, the group’s plan released Wednesday in Washington would gradually raise the retirement age to 70 from 67, scale back benefits for wealthier recipients and switch to a method of calculating inflation that would result in lower cost-of-living payments for current and future retirees.
“We have tried to gather three or four very pragmatic, despite their political firepower, relatively straightforward proposals that do the trick,” said Gary Loveman, chief executive and president of Caesars Entertainment Corp., chairman of the group’s health and retirement committee.
“This proposal dovetails very nicely with the demographic realities of the workforce,” said Randall Stephenson, chairman and chief executive of AT&T Inc. “We are going to need our employees to work longer just to fill the needs that we have in the work force.”
The group also offered a plan for the Medicare health program for the elderly that would raise the eligibility age to 70 and create a system of private plans to compete with the government-sponsored program. The proposal is similar to that proposed by House Republicans as part of their budget and was rejected by the Democrat-run Senate.
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