Liberal, Irreverent

Wednesday, February 23, 2011

Robert Reich: No need to raise social security retirement age or cut benefits

If SS taxes again 90% of payrolls as it was before (it has gone down to 84% due the growth of income inequality, aka, more income concentrated in rich people), and it's also indexed so it keeps taxing 90% of payrolls, guess what? Social Security problems are solved permanently, it means forever. At current levels, taxing again 90% of payrolls means that the current max SS taxable salary of $106,000 increases to $185,000, which is a very small price to pay to guarantee the solvency of Social Security permanently.

Guess who opposes? Yes, (1) greedy rich people, whose retirement is pretty much secured and in their infinite greed want to squeeze as much as possible from the treasury; (2) greedy corporations, to avoid the matching contribution, regardless if it means their own workforce living a retirement of misery (especially when they are also eliminating pension plans and 401k have been a failure).

But there is more, actually the bad news. This proposal was originally considered by President Obama to be proposed with the budget, but guess what? He bactracked. Why? I don't know. I just hope it wasn't another betrayal to satisfy his new friends; rich people and corporations.

This is sensible, realistic proposal we must back and push, push and push until enacted. There cannot be defeat as defeat will mean the death of social security and a retirement of misery for future generations.

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