At Last… A Social Security Solution

Original post

Here’s a slap for all those folks out there who get upset with me because they think I’m too far to the right.

There’s a bill in Congress right now that appears to fix the funding, benefits, cost of living and tax problems with the current Social Security program.

The bill would increase benefits for those who are receiving the least: the neediest. That’s a good thing.

Future cost of living increases would be based on the Consumer Price Index for the elderly, which rises faster than the current index in use.

The bill would also increase the tax thresholds for benefits to $50,000 for individuals and $100,000 for couples. That certainly makes more sense.

To pay for these changes and cover all benefits until around 2100 (I haven’t seen a firm date), here’s what has been proposed…

The bill would increase the current tax rate, employee and employer combined, by 0.1% per year until 2043, when it would reach 14.8%. I can live with that. Small, reasonable increases will generate enough revenue to maintain and improve benefits in some cases.

The payroll tax would also be applied up to $139,900 and kick back in again when income exceeds $400,000. Income between $139,900 and $400,000 would be payroll tax-free.

Now, here’s the slap: Despite the fact that this plan includes tax increases and is the brainchild of a Democrat, I like it.

I don’t care which side of the aisle it comes from – if the numbers work, if it keeps the system solvent, if fewer of our benefits will be taxed and if the neediest get a boost, I say go for it.

I’ve never understood why the tax stopped at the current income level, and I think it should be applied to all income up to and through $139,900. But whatever.

Here comes my criticism: It should be a sliding, decreasing payroll tax as we get up to the higher income numbers.

I think it will get less resistance if the really big earners aren’t being socked for huge dollars, but I’ll take this as a starting point. It works for me.

Now, if my agreeing with the 200 Democrats who support the bill in the House isn’t enough of a slap, here’s another…

I hope you’re sitting down: Both Nancy Pelosi and President Trump are reported to be on the same side of the table on this issue.

Now, won’t that be something to see?

I would encourage you to write to your elected representatives. Tell them we need something done here and anything is better than what we face now.

See, I’m not all right-sighted.

Good investing,

Steve