The Replenish Social Security Act

Currently, the Social Security Trust Fund is set to run out if no changes are made in 2034. What this means is that Social Security recipients will see a reduction in their benefits. Current estimates have it between 77% and 83% of current benefit levels. 

We can not let this happen. These are earned benefits. Recipients of Social Security benefits have paid into their system their entire lives. They woke up, went to work everyday, worked hard in our factories, steel mills, car plants, and earned every single cent that they received from Social Security. 

There are a variety of changes we can make to Social Security but let me be absolutely clear : Privatizing Social Security is not a viable option. Anyone who tells you otherwise is lying to you. Let me paint a scenario as to why this isn’t viable.

Imagine the year is 2008. You just retired and the market is tanking. Do you think the Social Security Trust Fund manager, who is now either an executive at a big bank, hedge fund, or other financial institution, is going to put your monthly check ahead of their shareholders? Or their CEO’s massive annual bonus? I don’t either, and that is why I will never support a bill that privatizes social security.

Here are the reforms I would introduce in my legislation to help replenish the Social Security Trust Fund.

1. Eliminate the Income Cap on SS Taxes

• Currently, SS taxes are capped on those making UNDER $160,200. This means that Elon Musk, Jeff Bezos, Mark Zuckerberg, and the other 800 billionaires who have taken advantage of our tax system, currently pay the same amount into the trust fund as a member of Congress who makes $175,000 per year. That’s not right. This is the easiest fix, and would solve for 60% of the funding shortfall in the trust fund

2. Apply the Payroll Tax to Incomes Over $400,000

• The payroll tax currently applies to the first $160,200 of wages, and this taxable maximum increases annually with average wage growth. This option would immediately apply the payroll tax to ALL wages above $400,000. This could solve around 67% of the funding shortfall in the trust fund. 

3. Increase The Payroll Tax

• Currently, the payroll tax is 12.4%, split evenly between the employee and employer. If the payroll tax was raised by 1% (split evenly), it would solve for 30% of the proposed shortfall in the trust fund.

4. Cost of Living Adjustments

• There are several different methods that could be used here such as Chained CPI or Means-Testing the CPI. These are often agreed upon as better identifiers of the cost of living changes, and can help solve anywhere from 19%-41% of the funding shortfall. 

5. Reduced Benefits for the top 10% of wage earners

6. Raise Additional Funds by Covering Newly Hired State & Local Workers

• These additional workers covered would help to add new funds into the trust funds. Currently, these workers are often exempt from Social Security.

I do not support raising the retirement age. Many workers break their backs, working hard, labor intensive jobs. We should not make them wait any longer to receive their hard earned benefits. The reforms I would include in my bill would provide sufficient funding for the Social Security Trust Fund without having to raise the retirement age.

There are plenty of reforms available, and the fact that our elected officials haven’t acted to do anything to save it, while Elon Musk & Republicans attempt to cut benefits is embarrassing. Social Security continues to keep millions of elderly Americans and senior citizens out of poverty. 

I intend to keep it that way when I’m elected to Congress.