Why Some Lawmakers Are Calling Social Security ‘A Big Ponzi Scheme’
U.S. Senator Tommy Tuberville (R-AL) recently called Social Security a big Ponzi scheme. According to an article by AL.com, he claims hardworking Americans are “getting scammed out of their retirement money — the money that they pay into this government.”
It’s projected that the Social Security trust fund will be depleted in less than ten years. When that happens, it will be unable to pay full benefits. Retirement benefits could be slashed by about 20 percent.
The Alabama lawmaker says the American people no longer have faith that they will receive the benefits they have earned.
“It’s a big Ponzi scheme, and everyone is forced to participate in it; you have no choice. It doesn’t matter if you’re 16 or 76,” said the Alabama lawmaker. “A little over 6 percent of your paycheck is taken out to pay for this retirement. Americans have been paying for Social Security for years only to see a fraction of what they have been promised to be returned.”
Shoring Up Social Security
Fortunately, there is still time for Congress to take action and shore up Social Security — before the trust fund runs dry.
The Seniors Trust stands behind the Social Security Expansion Act introduced by U.S. Sen. Bernie Sanders (I-Vt.). Not only will this landmark piece of legislation ensure the long-term solvency of Social Security — keeping it solvent for another 75 years — but it will also provide seniors with bigger benefits.
Under this bill, seniors would receive an extra $2,400 in benefits each year. In addition, it would recalculate the way the Social Security cost-of-living-adjustment (COLA) is calculated, using the Consumer Price Index for the Elderly (CPI-E) instead of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The CPI-E more accurately reflects the actual spending of seniors, which tends to be on expenses such as healthcare and housing.
To fund the proposed benefits boost and maintain solvency far into the future, the Social Security Expansion Act calls for applying the Social Security payroll tax on all income above $250,000. Currently, earnings above $176,100 aren’t subject to the Social Security tax.
Show Your Support
The Seniors Trust believes the Social Security Expansion Act seeks to reform Social Security the right way: by expanding and strengthening benefits proven to reduce senior poverty and improve retirement security as well as extending the solvency of this crucial program.
Please, sign our petition to Congress and join us as we strive to improve the lives of senior citizens.
