A Sensible Solution to Social Security Funding
After years of paying FICA taxes, and mandatory income tax on Social Security earnings, our seniors are once again under attack by Obama’s Financial Reformers. President Obama (by executive order) selected the individuals recommending a cut to Social Security, Medicare and Medicaid benefits. If the cut is made, it will inflate the existing 43.6 million at poverty level by millions more. This callous indifference exhibits how morally deficient our government representatives and president have become!
The group’s agenda is to raid Social Security and use the money to support our current military conflict, and to reduce the deficit that our self-serving leaders have created through bail outs. Yet, they are fighting to extend Bushe's tax cuts for the wealthy. The justification of this crime against the elderly, and future generations, will be blamed on "necessity” in conjunction with their infamous companion “fear”. Don’t fall for it!
EPI economist Monique Morrissey has recommended a fair tax approach which would reinforce our Social Security program. Her idea is to slowly raise the existing tax cap by 2% a year on those making $106,800.00 or more until the amount covers 90 percent of all income. This would eliminate a third of Social Security’s projected shortfall. Is there a payoff for the wealthy here---of course, they will receive higher benefit payments upon retirement.
Here’s an FYI; FICA tax is capped at $106,800.00. Once you’ve reached that cap, your contribution in Social Security taxes has been $6,622.00. Earnings beyond this amount will be excluded from further FICA tax. However, based on the capped wage, the monthly retirement draw will be approximately $2,300.00. I believe it’s time for an equitable adjustment in this area don’t you?
Morrissey determined that incomes among top wage earners have grown at a faster pace than wage earners below the cap. In fact, under the current cap 16% of earnings remain untaxed by Social Security. Naturally, it’s a bonus for the rich but a huge loss for Social Security. She also suggested that employers should be required to pay their fair share of FICA tax on each employee’s “full” salary. These two changes alone will balance and strengthen Social Security’s base.
In my opinion, there is only one reason our leaders would discount Morrissey’s solution and that is to protect themselves, their benefactors and other wealthy individuals who have never paid their fair share into the Social Security program. The tax structure in our country has always applied a hands-off approach concerning the rich while the middle class carries the tax burden.
Due to the outsourcing of jobs (encouraged by our president and congressional leaders) we are no longer a major industrial and manufacturing nation and our middle class is quickly vanishing. So, I think our government owes us one; I say, “Right on Ms. Morrissey, I like the idea of the rich paying their fair share of Social Security taxes. This sensible solution earns you two thumbs up and a five star rating from me!”
- Be sure to read the EPI report here
- Petition to Stop Social Security Cuts
- 10 Top Facts About Social Security
"If the misery of the poor be caused not by the laws of nature, but by our institutions, great is our sin.” ~Charles Darwin