Because I’m a person of advanced years, I DO think about Social Security a bit more than I did in my carefree younger days. But I quickly tire of any talk about Social Security insolvency. Not because it isn’t possible, but because the fix is so patently obvious.
It’s time to raise the roof!
Here’s why:
I know $184,500 is more than most Americans earn in a year. But there are plenty of people making a LOT more than that. (6% of covered workers, per the Social Security website.) And it seems unfair that once they’ve hit that mark, they don’t contribute another nickel… even though their SS payments will be higher than the Average Joe’s (and Average Jane’s) based on their lofty income.
And the $184,500 is based on “earned” income (wages, salary, tips, bonus…). So if you make a killing in the stock market, or pulling in thousands in dividends, that’s not even taken into consideration.
Raising the roof (i.e. the max or cap) would deliver a lot more money into the system, without creating a hardship on anyone. What should that roof be? 300K? 400k? Greater minds than mine can sort that out.
OR, maybe instead of raising the roof, we shouldn’t have a roof at all!
Nick Hanauer‘s proposal calls for that (eliminating the roof), and actually goes a couple of steps further, by lowering the contribution rate by 50% while also eliminating the capital gains and investment exemptions and loopholes. Check it out:
“Half of all national income is now above the cap.”
I’m not one of those “eat the rich” types. But I do think that Social Security could be much better for America if it were more social.
You done said…