Op-ed: Social Security Payroll Tax Should NOT be Raised - AMAC & The Lowell Sun
Mark Warshawsky of the American Enterprise Institute explains why he opposes eliminating the Social Security payroll tax cap. The combined 12.4% rate applies to the first $160,200 in income for 2023. Warshawsky notes there is progressivity and redistribution already built into the payment system, but “eliminating the cap on earnings would further reduce the link between earnings and benefits. This would be politically harmful to the program and discourage work.” It would also encourage payroll tax avoidance with schemes like stock options versus wages. Finally, the author notes the scheme does not fix the solvency issue and that there are better ways to tackle Social Security’s financial woes. The full article is in The Lowell Sun here.
The Association of Mature American Citizens (AMAC) believes Social Security must be preserved and modernized. This can be achieved with no tax increases by changing cost of living adjustments, the retirement age, and delayed credits. AMAC advocates for a bipartisan compromise, “The Social Security Guarantee Act,” taking selected portions of bills introduced by former Rep. Johnson (R-TX) and current Rep. Larson (D-CT) and merging them with the Association’s own research. One component is Social Security PLUS, a voluntary plan to allow all earners to have more income at retirement. This component is intended to appeal especially to younger workers. AMAC is resolute in its mission that Social Security be preserved and modernized and has gotten the attention of lawmakers in DC, meeting with a great many congressional offices and their staffs over the past several years. Read AMAC’s plan here.