One of the reasons I write this letter every day is to provide you with the facts and analysis you need to counter the trash rhetoric coming from the Trump campaign and the Trump Republican Party.
Today I would like to talk about social security.
of Social Security Trustee I was once a member myself. say This program: 2033After that, social security can only be paid roughly. 77 percent Benefits to be paid.
President Trump has promised to protect Social Security but has offered no plan for how to do so.
Instead, he promises to eliminate taxes on Social Security benefits.
This do not have Save Social Security. In fact, quite the opposite is true: without Social Security tax revenue, the Social Security Trust Fund would become even more depleted.
This has been a long-standing Republican goal, and Social Security is one of the most important. Popular and success No government program ever created would do more than help retirees. 26 million people lifted out of poverty.
Republican strategists believe that eliminating Social Security would pave the way for eliminating many other things Americans rely on.
Why is Social Security underfunded? do not have This is because many of the baby boomers are retiring.
Social Security trustees had anticipated an increase in the number of baby boomers retiring. This is why Social Security Amended in 1983The age at which full retirement benefits can be received will be gradually raised. 65 to 67This change is helping baby boomers fund their retirement.
The real reason Social Security is underfunded is something the trustees never anticipated: how much of the total income is flowing to the top.
Today, most of the American workforce Low income Than social security trustees predicted many years ago — Reduced revenue Flow into the program.
If wages for American workers had kept up with trends from decades ago, and their Increased Productivity — Their Social Security payments would have kept the program well-funded.
but Much larger chunk of Total national income Compared to a few decades ago, it is now coming out on top.
However, there is a limit on how much income you can earn that is subject to Social Security payroll tax. Any income above that limit is not taxed. The 2024 cap is $168,600..
So the rich got richer, More and more of the country’s total income Run away Social Security Payroll Tax.
A CEO who makes $20 million a year earns roughly One percent The worker earns half the income, under The cap goes towards paying Social Security taxes. 100 percent of their income.
In the end, both parties end up paying the same amount for the program, which is unfair.
As a result of the rise in income above the inequality cap, the Social Security Trust Fund is estimated to have shrunk by $1.4 trillion since 1983.
The solution is obvious: abolish the cap, rich Pay more in Social Security taxes.
One Plan A bill introduced by congressional Democrats would eliminate the income cap above $250,000; Investment Income To social security tax.
This is expected to increase Social Security’s ability to pay. Over the next 75 years Without raising taxes on 93 percent of American households.
Bottom line: Trump’s plan would destroy Social Security.
The Democratic plan would save it. and Please be fair.
To secure Social Security’s long-term future and ensure working people can retire with dignity, we need to make the wealthy pay their fair share.
Robert Reich is a professor of public policy at Berkeley and a former Secretary of Labor. His work can be found at: https://robertreich.substack.com/.
