There has been much talk lately about the solvency of Social Security and whether it will be available for our children and grandchildren. There is a two-part solution to this problem and neither is new.
First, it would be wise to stop the government from “borrowing” from the fund. In fact, the Budget Enforcement Act of 1990 made it a violation of federal law to use Social Security revenue for non-Social Security purposes.
This seems to have been ignored, as any annual surplus revenue from FICA tax payments has gone directly into the general fund rather than staying in the account to keep it solvent.
That should cease.
Second, we should remove the Taxable Earnings Base, or “cap” as it is generally called, on all declared income. This would create a large increase in revenue. As of 2012, that cap is set at $110,100 and no FICA tax will be paid on earnings above that amount. Why not?
After all, these are the people who, when they retire, are going to receive the maximum monthly benefit, which is $2,513 for 2012. Why should they not pay the FICA tax on their entire income? A report by the Congressional Research Service on Sept. 24, 2010 states, “Raising or removing the TAB could reduce or eliminate the long-term Social Security deficit.”
Don”t get me wrong. I”m not for a “means test” for receiving benefits if you”ve paid into the system all of your working career.
I just believe that one should pay this tax on total income earned.
This would relieve any concern about the availability of benefits for future generations. But how can we get a law to this effect passed?
It seems that the lobbyists protecting the interests of the wealthy and major corporations stop any efforts to do so. So how do we get rid of the lobbyists preventing this sensible legislation?
I”ve come to believe the only way to get these changes made is to pass a new Amendment to our Constitution that would stop moneyed interests and lobbyists who are hired by and protect the wealthy and major corporations, from influencing our elections and elected representatives and the legislation they enact.
It”s the only solution I can see that will enable us to make these desperately needed changes for our children and grandchildren.
Tim Everton
Clearlake
