Unions back plan to shore up Social Security

[Omaha Steve]

http://www.workdayminnesota.org/index.php?news_6_5464

By Mark Gruenberg
10 March 2013

WASHINGTON - The AFL-CIO, the labor-backed Alliance for Retired Americans, the Steelworkers and the Auto Workers back new legislation to close Social Security’s future funding gap – which won’t begin for another 20 years – by taxing millionaires and billionaires, sponsors of the legislation say.

The lawmakers, Sen. Bernie Sanders, Ind.-Vt., and Rep. Peter DeFazio, D-Ore., dropped their proposal in the congressional hopper on March 7. It would extend Social Security’s payroll tax of 6.2%, which now applies only to paychecks up to $113,000 yearly. Their bill would reinstate it on all income – not just paychecks – over $250,000.

“Ninety-four percent of the country pays Social Security taxes on all their income. Six percent do not. This has got to change,” Sanders, chair of the congressional Save Social Security Caucus, declared at a press conference.

The senator explained that Americans “take it for granted” that Social Security will pay full benefits, because it has for 77 years “in good times and bad. And it’s not contributed one red cent to the deficit.”

That hasn’t stopped congressional Republicans and other Social Security foes from claiming it faces a shaky financial future. Foes also contend Social Security must also “contribute” to cutting federal red ink. The foes cite actuaries’ estimates that in 2033, Social Security will have only its payroll taxes to rely on – which will then cover only 75% of planned benefits. Their solution: Cuts, and raising the retirement age.

FULL story at link.

[freshwest]

1. Good plan, the only reform we need is more jobs and progressive taxation.