Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

General Discussion

Showing Original Post only (View all)

elleng

(130,679 posts)
Sun Jun 19, 2016, 07:46 PM Jun 2016

by Robert Reich:As if you didnít already have too much to worry about, Social Securityís funds [View all]

are running low. That’s because people are living longer than ever, and thereby drawing more Social Security; boomers are retiring at a rate of around 10,000 per day, and essentially will be doing so through 2030; and Social Security's investment holdings aren't earning much interest thanks to the Federal Reserve, which has kept interest rates low.

How to fix Social Security? You’ll be hearing lots from Republicans and conservative Democrats about raising the age of eligibility (a bad idea that hurts the poor – because the poor don’t live nearly as long as the rich), or reducing benefits overall (also regressive), or raising the Social Security tax (also regressive). The best idea is to raise the payroll tax cap on earnings.

This year, income up to $118,500 is subject to the Social Security payroll tax. The average household earning around $51,000 this year will pay Social Security payroll taxes on every single dollar. But a multi-millionaire pays only on the first $118,500 of income. Only around 10% of the population is earning in excess of $118,500 annually, so raising the cap would only affect a small percentage of the population.

I say eliminate the cap altogether, and use the extra funds not only to save Social Security but expand it.
What do you think?'

https://www.facebook.com/RBReich/?fref=nf

107 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
social security already rips off recipients. fix those problems as well nt msongs Jun 2016 #1
Can't begin to imagine why you'd think Social Security rips off recipients. SheilaT Jun 2016 #4
Well, if ya gotta ask how much the cat food costs... Octafish Jun 2016 #11
I still haven't a clue what you're talking about. SheilaT Jun 2016 #41
Talking about those with power and wherewithal to help, don't. Octafish Jun 2016 #45
You are still not making sense. SheilaT Jun 2016 #46
The only reason Urchin Jun 2016 #55
Banks received trillions in the bailout. Octafish Jun 2016 #76
You are absolutely right hueymahl Jun 2016 #82
Making less than $10,000 a year is pretty much the definition of poverty Stryst Jun 2016 #84
Well my plan cannabis_flower Jun 2016 #85
Given that the average Social Security check is SheilaT Jun 2016 #86
How does Social Security rip off recipients? George II Jun 2016 #20
No. Social Security insurance does NOT "rip off" recipients. Its a more efficient insurance program w4rma Jun 2016 #29
I don't draw very much social security 1939 Jun 2016 #60
SS can only do what the law allows it to do.Change the law. End the cap and SS would even bjobotts Jun 2016 #93
Typical. merrily Jun 2016 #61
Typical Hillary supporter. Loudestlib Jun 2016 #77
Social Security is about protecting the benefit after 2034. The last reform which included raising Thinkingabout Jun 2016 #2
and d*mn I'm on the 67 full retirement mode. a kennedy Jun 2016 #14
I doubt raising the cap is going to adjust the fact of taking early retirement. Thinkingabout Jun 2016 #18
The 2008 collapse of employment and Hortensis Jun 2016 #73
When there are the wealthier paying 15% or less in taxes is a problem. Also those like Trump and Thinkingabout Jun 2016 #80
Umhm. She just announced another item Hortensis Jun 2016 #83
Do you collect social security? Silver_Witch Jun 2016 #27
The age for full retirement was raised for me, full retirement was raised from 65 to 67 Thinkingabout Jun 2016 #38
I am alright with raising it to 70 BUT there must be something for people who work Jim Beard Jun 2016 #48
Would depleting the funds be better? If some reforms are not accepted then Thinkingabout Jun 2016 #69
Why is raising the cap unacceptable? Silver_Witch Jun 2016 #100
The last SS reform was in 1983, there was an increase in max cap and increase in full Thinkingabout Jun 2016 #101
I work full time and don't get social security Silver_Witch Jun 2016 #103
I have not protested an increase in the cap, I have said there needs to be an increase in the cap Thinkingabout Jun 2016 #104
Technically full retirment is 70 fasttense Jun 2016 #72
That's not correct. CrispyQ Jun 2016 #79
Every year one delays in starting their benefits increases the amount of the benefits so waiting Thinkingabout Jun 2016 #81
For me it is 72. Is that raised enough for you? Silver_Witch Jun 2016 #99
It can only be broke if the US goes bankrupt since it's based of the full faith and credit of the US bjobotts Jun 2016 #94
Hopefully that is true! Silver_Witch Jun 2016 #98
I'm fine with raising cap. Problem is SSA studies have shown that doesn't solve the entire problem u Hoyt Jun 2016 #3
thats why they call it Cryptoad Jun 2016 #10
This message was self-deleted by its author Snarkoleptic Jun 2016 #5
Exactly why should professionals, who earn far more than the average, get a big break? hedda_foil Jun 2016 #22
Uh... Abq_Sarah Jun 2016 #59
Self-employed (and contract workers) 1939 Jun 2016 #62
And be sure to pay back Monet borrowed from the fund to close budget gaps tk2kewl Jun 2016 #6
This is why they say the trust fund is broke... Moostache Jun 2016 #88
My family earns above the cap. Sophiegirl Jun 2016 #7
As does mine lakercub Jun 2016 #87
Ready?...let's go! Zoonart Jun 2016 #8
Cut The Crap Raise the Cap......wow, love that. eom a kennedy Jun 2016 #15
Been saying remove the cap for years. WHEN CRABS ROAR Jun 2016 #9
Bernie has been saying this all along, but where is Clinton on this simple step? rgbecker Jun 2016 #12
+1 phazed0 Jun 2016 #19
Check her website. George II Jun 2016 #21
Oh, I found this as an "option". Thanks. rgbecker Jun 2016 #24
You left out she wants to privatize Social Security mrr303am Jun 2016 #43
Is this why she didn't criticize Dubya Bush back in 2005 when he went on tour . . . Major Hogwash Jun 2016 #67
Wall Street wants that SS money so badly, they can hardly keep from wetting their pants. rgbecker Jun 2016 #71
What's the worst that could happen? klook Jun 2016 #74
Agree with Bob Reich~ KoKo Jun 2016 #13
The Republicons will legislate a "fix" for SS and Clinton will sign. nm rhett o rick Jun 2016 #16
That is actually the closest estimate to the situation that anyone has said. Phlem Jun 2016 #97
Eliminate the cap on SS and the age limit on Medicare. Spitfire of ATJ Jun 2016 #17
SS turner52 Jun 2016 #23
actually its closer to 3 trillion (with a T) n/t. airplaneman Jun 2016 #30
SS has a surplus. Spitfire of ATJ Jun 2016 #44
not an annual surplus, but an overall positive balance spud_demon Jun 2016 #57
Let's hope it's in the Platform. Spitfire of ATJ Jun 2016 #58
Is there a limit for getting Medicare or are you talking about making Jim Beard Jun 2016 #49
I'm talking about removing the age requirement. Medicare for All. Spitfire of ATJ Jun 2016 #53
Raising the minimum wage helps, too... Wounded Bear Jun 2016 #25
Take that GD cap off from FICA taxes. roamer65 Jun 2016 #26
Why? If they are paying someone 150k another 2-3k is not going to make a difference newthinking Jun 2016 #31
If Hillary wins you will see that we face cuts... Silver_Witch Jun 2016 #28
I find the living longer argument somewhat misleading. Scruffy1 Jun 2016 #32
No, not correct 1939 Jun 2016 #65
Good points all, but don't forget, no tax on first 5.4 million. rgbecker Jun 2016 #89
Raising the base income would have the same effect. seabeckind Jun 2016 #33
Your two cents is worth senseandsensibility Jun 2016 #34
Thanks. I'd been hearing quite a bit about stagnant wages. seabeckind Jun 2016 #35
Facts don't matter to some senseandsensibility Jun 2016 #37
And yet we have millions of Hispanics that are not even going to vote. Jim Beard Jun 2016 #50
Raise the cap, yes Silver Swan Jun 2016 #36
Good to hear from you, elleng Jun 2016 #39
Actually, it's already the case that the highest earners SheilaT Jun 2016 #42
Yes but currently the SS contribution is capped at a certain income level. JonLeibowitz Jun 2016 #54
Gore had a great point with the lock box! scscholar Jun 2016 #40
You bet, Robert! I'm with you on that all the way. PatrickforO Jun 2016 #47
This is a good thread! Jim Beard Jun 2016 #51
Sounds like a good solution: Betty Karlson Jun 2016 #52
This isn't rocket science, either eliminate the cap, or at the very least raise the CAP. why that still_one Jun 2016 #56
Removing a cap is basic courtesy. merrily Jun 2016 #63
I agree, but since when has Congress been courteous??? elleng Jun 2016 #64
When they are kissing up to money! merrily Jun 2016 #66
I totally agree with Robert Reich, end the tax SS Tax NOW. downeastdaniel Jun 2016 #68
Um, klook Jun 2016 #75
I think removing the cap is good common sense. marble falls Jun 2016 #70
Does the military run a surplus? Does Homeland Security? n2doc Jun 2016 #78
CREATED by AYN RANDIAN acolyte greenspan. the CAP is TOO LOW. index it. why is nothing INDEXED??? pansypoo53219 Jun 2016 #90
Raise the CAP on FICA deductions? bvar22 Jun 2016 #91
Easy Problem To Solve scottie55 Jun 2016 #92
I hope to not have to retire till i am at least 75 nolabels Jun 2016 #95
Sounds reasonable to me, but Stevepol Jun 2016 #96
Wouldn't the additional money just go back to the people who put it in, or would the maximum The_Casual_Observer Jun 2016 #102
Everywhere I have traveled in the U.S. I see multimillion dollar homes .. nice areas and it's only YOHABLO Jun 2016 #105
Kicked and recommended. Uncle Joe Jun 2016 #106
Gee, guess Congress shouldn't have robbed us for 30 years to fatten the Pentagon Warpy Jun 2016 #107
Latest Discussions»General Discussion»by Robert Reich:As if you...