One idea for saving social security…

I noticed some buzz about @SenatorRomney‘s TRUST act being squeezed into the next COVID relief package.

I don’t like the idea of fast-tracking changes to the senate. Balance of powers and all. But SS needs help: a boom of retirees are hurting, as are the workers supporting them.

Here’s one idea. I’d love to see some healthy criticism:

What if social security taxes were changed from 6.2% to 3% — but this applied to ALL income, instead of stopping at $137,700?

that’s the tweet.

Could we afford to care for our seniors as we should, while boosting the poor and middle class?

I realize the cap symbolizes fairness for those who earn more than $137,700. But who does that without the help of colleagues, contractors, and customers who earn less… not to mention a host of essential workers who sustain them?

The upper middle class would not be harmed by this at all, because the rate would be cut. And would those earning well above that really be harmed? I realize the argument is that they’re the ones driving jobs and the economy.

But hasn’t COVID-19 shown us otherwise? A healthy economy is so much more than a stock market, just like a strong nation is more than a strong military.

I think we can do better.

Originally tweeted by Ms V (@supernovia) on July 25, 2020.

Unrolled via WordPress.com because it’s rad. Photo by me, just now, because I can’t sleep with an angry stomach.The 1984 penny was happenstance.

One Comment

  1. Joseph Scott

    The real question is, what does the math look like for such a change. Unfortunately from what I’ve found so far it would make the situation worse for Social Security.

    The Center on Budget and Policy Priorities (CBPP) has a write up on this from 2016 – Increasing Payroll Taxes Would Strengthen Social Security:

    Raising the tax cap could increase higher earners’ benefits as well, depending on how policymakers treated newly taxed earnings. Changes to the tax cap could close roughly a quarter to nearly nine-tenths of Social Security’s solvency gap, depending on how they were structured.

    And that is if the rate were kept the same across the board. If the goal is to save Social Security, meaning it takes in at least as much money as it spends, then it sounds like increasing the cap is only part of the solution.

    Liked by 1 person

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