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Would Taxing the Rich More Solve Social Security’s Woes? No.
Democrats routinely introduce bills to increase taxes on the wealthy, mainly by increasing the amount of income subject to the combined 12.4% payroll tax. For 2023 the first $160,200 is subject to tax. Various proposals would change that to the tax kicking in yet again at $250,000 or $400,000. More revenue would come in. But as Trevor Jennewine notes in this piece, it would only add a small number of years until insolvency hits again. Thus it is not a viable long term solution more than it is a short fix or even gimmick for the very real problems the program faces. “Lawmakers will need to take other steps to ensure benefits remain payable in their entirety, and the long-term solution will likely involve a blend of boosting revenue and cost-cutting measures.” Full article 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.