Why one proposed Social Security ‘fix’ won’t work
Brenton Smith writes on the issue of Social Security for numerous media outlets. Smith’s op-ed here focuses on the shortcomings of the Strengthen Social Security by Taxing Dynastic Wealth Act, introduced by U.S. Senator Chris Van Hollen (D-MD). The new law would turn the estate tax into a major source of funds for Social Security by returning the estate tax to 2009 levels starting in 2020 and depositing the tax revenue into the Social Security Trust Fund. The first misconception about this legislation is the improvement in the Social Security’s finances comes from the diversion of all existing estate tax revenue. This would add about $260 billion to the national debt over just the next decade. Second, most of the new money comes from people who have earned a lot less than the uber-rich. “The largest segment of salvation draws most of its money from the estates of middle class Americans in the distant future. The thresholds that trigger the levy are fixed, so inflation is apt to push average people into the tax over time.” Read full piece here from The Baltimore Sun.