Scrap the Cap on Soc

Social Security has been one of the pillars on which the US has developed a solid Middle Class; and now that the Middle Class is under attack, Social Security is also enduring an assault. Politicians and some of their media puppets (Fox News) insist on telling us Social Security will run out of money in the future.

Those who understand what has happened know that politicians like George W. Bush have raided the Social Security Trust Fund to invade Iraq and fight a war in Afghanistan. The bottom line is that The Social Security System is quite capable of supporting itself and caring for those retirees who have invested part of their wages in the system. If the system were a "locked box" as Al Gore in 2000 suggested, it would be self supporting.

The "Locked Box"
that was never locked

On the other hand, George W Bush raided the fund and now Republicans are asking workers to pay more and telling potential retirees to work longer than the promised retirement in order to make up for the money that politicians like GW Bush have removed. However, there is an opportunity to strengthen the system, but most politicians don't want to consider it -- raise the maximum  earnings level on which workers pay Social Security taxes.

At the present time the limit is $118,500. The result is that corporate executives making hundreds of million dollars a year pay Social Security taxes only on the first $118,500, There seems to be no logical reason for such a maximum. Why not tax all earnings?

Since 1983 a larger and larger share of earnings have escaped the Social Security tax. Then (1983) 90% of total earnings were taxed; today only 83% is taxed. 17% of total earnings is not being taxed. If the Social Security System needs additional revenue, eliminate the the maximum earnings limit. Tax all earnings equally.

The growing divide in wages in the US, means that since the top earners, millionaires and billionaires, contribute only on the first $118,500, many of them have already reached the max in February while the average wage earner will be paying the tax all year long. These average wage earners are also now in the unenviable position of seeing their wages decrease or stagnate while their productivity continues to increase.

Our seniors, both now and in the future, who pay into Social Security over their lifetimes should be "secure" in their retirement, and we can make that possible by having wealthy Americans pay their fair share.