Rusty’s latest article on social security cuts and ways to prevent those expected cuts starting in 2033 missed a key solution: Smash the Cap. It’s the primary and best way to extend solvency of social security for many years to come.
For those unfamiliar – employees pay into Social Security at 6.2% until they have earned $160,200 (2023). Any wages after $160,200, no Social Security is deducted from their paycheck. This approach is considered regressive because middle and low income workers pay a much greater share of their income into Social Security than the wealthy. If you earned less than $160,200 in 2023 you are paying into social security every paycheck, all year long.
For higher income earners, they sometimes only pay into social security through July or so (depending on their income).
Smash the Cap would eliminate the cap ($160,200 for 2023) and employees would continue contributing to the social security fund all year long – irregardless of how much they make. Doing this means approx $20Trillion going into Social Security and will keep it solvent through 2046. Why would we not want or do this?
Yet a bigger question – Rusty knows all this, but failed to include this in his response, failed to appropriately inform his readers. Why?
Pat Meyers
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