Angus King (I-ME) & Bill Cassidy (R-LA) Are Leading The Way-- To Hell
Cutting Social Security benefits— by raising the retirement age for example— can never be considered “bipartisan,” even if a few corrupt right-wing Democrats join with the GOP in their unending war against the working class. The wording of this headline in Semafor this morning made me sick: A bipartisan group of Senators is talking about raising the retirement age on Social Security.
Bipartisan? Who? I looked closely for the names of the traitors, expecting to see the worst of the congressional corporate whores in the mix: Sinema, Manchin, the 2 senators from Delaware and the 2 from New Hampshire, Angus King, Mark Warner… these are the worst of the Senate "Democrats," always more than delighted to work with the Republicans against the best interests of working families and be seen as “compromisers” and heroes in the eyes of the corporate media. And in the House? The Democrats who might as well be Republicans include Josh Gottheimer (NJ), Jared Golden (ME), Scott Peters (CA), Abigail Spanberger (VA), Don Davis (NC), Henry Cuellar (TX), Jim Costa (CA), Ami Bera (CA), Raul Ruiz (CA), Elissa Slotkin (MI)… but Slotkin wouldn’t dare vote to cut Social Security now, not in front of a statewide Democratic primary for the open Michigan Senate seat.
But no Democrats showed up in the Semafor piece, just 3 corporate-owned Austerity-oriented senators— right-wing loons Bill Cassidy (R-LA) and Mike Rounds (R-SD) and Maine independent Angus King, despite Joseph Zeballos-Roig referring to “a bipartisan group.” He reported that they are considering raising the retirement age to “about 70 as part of their legislation to overhaul Social Security.” Zeballos-Roig doesn’t mention the word “privatize,” but writes that “The plan also includes a proposed sovereign wealth fund (as previously reported by Semafor) that could be seeded with $1.5 trillion or more in borrowed money to jumpstart stock investments, the people said. If it fails to generate an 8% return, both the maximum taxable income and the payroll tax rate would be increased to ensure Social Security stays on track to be solvent another 75 years.”
Zeballos-Roig also reported that “On the left, Sen. Bernie Sanders, recently rolled out a bill that would apply the payroll tax to higher salaries, including wealthier Americans’ investment income, in order to fund a major expansion of benefits… Raising the cap on payroll taxes to cover top earners also is likely to be a tough sell on the right, which has resisted tax hikes for decades.”
Brian O’Connor reported this afternoon that Bernie’s proposed measure is very different from the bleak Austerity vision of the corrupt conservatives pushing it, most assiduously avoiding allowing their names to be used in connection to their treachery. Bernie’s Social Security Expansion Act (S. 393) “would expand benefits by an average of $2,400 a year per person and completely finance Social Security for the next 75 years. The bill calls for a new tax on some investment income and the elimination of the cap on wages taxed to support the Social Security trust fund.”
Under existing law, the payroll tax rate is 12.4%, half paid by workers and half paid by employers, with self-employed workers paying the entire amount. In 2023, all earned income above $160,200 is exempt from Social Security tax, while investment income isn't taxed at all.
Right now, a couple earning $75,000 a year pays Social Security tax at the 6.2% rate, while someone earning $325,000 is taxed on slightly less than half of what he earns at an effective rate of 3.02%– a much lower rate than the one paid by couple that makes less.
The wage cap– which automatically adjusts each year based on increases in the national average wage index– rose from $147,000 in 2022 and $128,400 in 2018, an increase of close to 25% in five years.
Under the proposed Social Security Expansion Act, investment income would be taxed at the self-employed payroll rate of 12.4% starting at $200,000 for individuals and $250,000 for joint tax filers. In addition, income of $250,000 or more would be subject to the payroll tax. Income in the gap between the current wage cap and $250,000 wouldn't be taxed. Instead, the proposed rules would wait until the wage cap rises to $250,000, at which point the cap becomes moot.
Sanders released a table showing the effect of the tax on the 10 highest-earning CEOs in the U.S. With compensation of $23.5 billion in 2022, Tesla CEO Elon Musk paid a Social Security tax rate of 0.00004% on his earnings. Under the Social Security Expansion Act, Musk would pay an additional $2.9 billion into Social Security, leaving him with a still-impressive $21.5 billion paycheck.
"The legislation that we are introducing today will expand Social Security benefits by $2,400 a year and will extend the solvency of Social Security for the next 75 years by making sure that the wealthiest people in our society pay their fair share into the system," Sanders said in a statement.
"Right now, a Wall Street CEO who makes $30 million pays the same amount into Social Security as someone who makes $160,000 a year. Our bill puts an end to that absurdity which will allow us to protect Social Security for generations to come while lifting millions of seniors out of poverty."
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