Social Security trustees today released their estimate that the combined OASDI trust fund reserves will run out a year earlier than previously projected. No doubt, opponents of preserving Social Security in its current form will use this new projection to justify cutting benefits or privatizing the program, neither of which is necessary.
What’s needed — and what the majority of the American people support — is increasing revenue flowing into Social Security, which has been capturing a declining share of income as wealth inequality worsens. This is because of the payroll wage cap, which deprives the system of adequate revenue, because no wages above $171,100 are subject to Social Security contributions. It is time to adjust the payroll wage cap so that the wealthy begin paying their fair share.
As we said after last year’s trustees report – whether insolvency is estimated to be a year later, a year earlier or the same, now is the time to build back reserves in the Social Security trust fund. But we should not take a bad deal that cuts benefits for the growing share of Americans that need Social Security for most or all of their income in retirement.
Raising the retirement age to 69 or 70, as many Republicans have proposed, would be a huge lifetime benefit cut. Means testing would cut income deep into the middle class. And lowering cost-of-living adjustments would make it harder for seniors to keep up with inflation. All of these harmful ideas have been part of Republican proposals to address the projected trust fund shortfall.
It is time to enact commonsense legislation to bring more revenue into Social Security. Current and future seniors (nearly 50% of whom rely on their benefits for all or most of their income) — should not be asked to bear the cost of improving the program’s finances. – Max Richtman, President and CEO, National Committee to Preserve Social Security and Medicare
###
Media Inquiries contact:
Walter Gottlieb