Bernie Sanders, an Independent senator from Vermont recently introduced a bill in the Senate titled: Keeping Our Social Security Promise Act. A companion bill was introduced into the House by Congressman DeFazio (D-OR). The bill, if passed will save Social Security for the next 75 years and would not require any decrease in benefits or a raise in the eligibility age requirement.
Presently, Americans to pay 6.2% of their wages to support the Social Security system. Income up to $113,700 is subject to the tax. Wage income beyond $113,700 is not taxed. Essentially this means the majority of working-class Americans pay 6.2% of 100% of their wages while the richest wage earners pay a smaller percentage of their wages to support Social Security.
An American making $35,000 a year pays a 6.2% tax on 100% of their wages. An American making $350,000 a year will pay 6.2% on only 1.6% of their wages. A millionaire will pay a fraction below 1 percent of their earned wages. Clearly, this is an unfair system with those making the least assuming a greater burden.
Bernie Sanders bill will make this a more fair system and save the valuable program for several more generations. Sanders bill would require the same percentage (6.2%) be deducted from the payroll of those making greater than $250,000. Of course the most equitable formula would be 6.2% on 100% of wages for all Americans or (6.2%/100%/100%.) Capitals gains should also be included in the 6.2%.
Sanders bill is bold, fair and courageous. Perhaps we need more independents elected to public office. We must also applaud Congressman DeFazio, a Democrat for the courage to put forth such a cogent bill. It’s a simple formula that will save Social Security for years to come and it’s a fair plan. It’s not perfect, but it’s a start in the right direction. If those Americans making below $113,700 a year encouraged their members of Congress to support the Keeping Our Social Security Promise Act, we’d have a solvent system for several more generations. We should all share the burden to ensure no senior citizen or those with disabilities lives in poverty. We can keep a great system, a great idea, and a great promise alive for another century.
Please support the Keeping Our Social Security Promise Act. A link to the bill’s Fact Sheet is provided below.