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Professor argues for higher Social Security taxes
Professor Joel McNally, writing in The Shepherd Express, notes how, over the past several years, college students have shown little faith in Social Security actually being there for them in their own old age. McNally advocates for the more liberal position of raising the tax cap (currently wages are taxed to $132,900) to address Social Security’s looming insolvency in 2034. Democratic reform bills by U.S. Rep. John Larson of Connecticut and Sen. Bernie Sanders of Vermont keep current caps, but then resume collecting Social Security taxes again on higher incomes to include extreme wealth. Larson’s bill would start taxing for Social Security again on incomes over $400,000. Sanders’ bill would start Social Security taxes again at $250,000 and also apply the tax to capital gains and stock dividends. While you can bring in additional revenue this way, the solvency problem is not completely resolved without other changes in the program. Further, economists generally sound the alarm when taxes are raised, as many businesses could hire fewer employees. Read his full piece here.
The Association of Mature American Citizens (AMAC) has a different approach, making modest changes in cost of living adjustments and the retirement age, without additional tax increases on workers. AMAC advocates for a bipartisan compromise, “The Social Security Guarantee Act,” taking selected portions of bills introduced by former Rep. Johnson (R-TX) and Rep. Larson (D-CT) and merging them with the Association’s own well researched ideas. One component is Social Security PLUS, a new yet voluntary early retirement plan that would allow all earners to have more income available 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 legislative staffs over the past several years. Read AMAC’s plan here.