Social Security used to capture revenue from about 92 percent of taxable earnings, but the current payroll wage cap ($184,500 annually) now includes only about 82 percent of the nation’s eligible earnings. The wealthy are paying proportionally less, depriving Social Security of much-needed revenue. It is only right that the wealthy — many of whom benefit from the labor of American workers — make an equitable contribution to the nation’s retirement security system, especially in light of vanishing employer-provided pensions.
Ramesh Ponnuru suggested limiting (or means testing) Social Security benefits for higher earners instead. This not only would rend the earned benefit nature of Social Security, it also wouldn’t yield sufficient savings to restore the system to long-term solvency. (Benefits for middle-class workers would have to be capped, too.) Legislation by Sen. Bernie Sanders (I-Vermont) would keep Social Security solvent for 75 years. Adjusting the payroll wage cap is fair and enjoys robust public support.
Max Richtman, Washington
The writer is president and CEO of the National Committee to Preserve Social Security and Medicare.