Social Security

Yes, Social Security, again, because people are still talking about cutting it.

First, repeating, Social Security does not, never has and by law never will add one dime to the deficit.

Second, Social Security can keep paying 100% of benefits at current levels until 2037. After that it can keep going at 80%, which adjusted for inflation is almost the same level as today.

Third, Social Security can keep paying at 100% of benefits at current levels until at least the end of the century if the payroll tax cap is raised. The tax was originally meant to apply to 80% of the population. Today, because of growing income inequality, it doesn’t apply to that much of the population. If the cap is raised to $180,000 from the current $106,000 it will be enough to cover benefits at 100% until the 22nd century.

What that means is that people who make $180,000 a year will pay the same percentage of their income in the tax as people who make $106,000, or those who make $50,000. In other words, right now the rich are getting a tax break that they can only keep if seniors and the disabled pay for it. Take the cap off entirely and there are no problems at all.

People who say that Social Security benefits need to be cut to reduce the deficit are lying.