Here’s What a Former Social Security Administration Commissioner Would Do to Solve the Insolvency Issue
Social Security is facing a funding shortfall. The latest prediction is that benefit cuts could be coming in about six years. This is sparking a lot of discussion about how to shore up the program.
Former Social Security Administration Commissioner Martin O’Malley told NewsNation’s The Hill that higher-income Americans should be paying more into the program. During the interview, he said he thinks “lawmakers should raise the cap on earnings subject to Social Security payroll taxes rather than pursue benefit reductions.”
The current payroll tax cap exempts annual earnings above $184,500 from Social Security taxes. O’Malley said most Americans “think it is unfair that wealthy people don’t pay the same tax rate as a custodian in a school or a teacher.”
Even for high-wage earners, the payroll cap is unfair. For example, according to an article by PolitiFact, Elon Musk, who is now the world’s first trillionaire, pays the same amount into Social Security as someone making $184,500.
Scrap the Cap
The Seniors Trust is on board with this. Our mission is to secure passage of the Social Security Expansion Act. This landmark bill buttresses the long-term solvency of Social Security by expanding benefits for seniors – not cutting them. And one of the ways it does this is by requiring the wealthiest Americans to pay their fair share.
The Social Security Expansion Act would lift the income tax cap and subject all income above $250,000 to an additional Social Security Payroll tax. Under this bill, more than 93 percent of households would not see their taxes go up by one penny.
In addition to strengthening the Social Security program, the Social Security Expansion Act also calls for increased monthly benefits for seniors and the enactment of an annual cost-of-living adjustment (COLA) that is fairer to seniors and their unique spending habits.
