Tax and spend for Social Security, but not the right way

President elect Biden wants to boost Social Security benefits, particularly for low-income households, by raising taxes on corporations and individuals earning $400,000 a year. That’s a fact.

But what is also a fact is that the Social Security Trust is still running out of money and raising taxes and then spending the new revenue on additional benefits does nothing to make Social Security sustainable beyond 2034-2035.

Biden and many in Congress also want to change the method of calculating the annual Social Security COLA creating the expectation of higher benefits, but this is largely an illusion …which also must be paid for.

4 comments

  1. Trump – Biden – Pence – Harris- Pelosi – McConnell…It don’t matter, as I have always told my Government students; How can you tell when a politician is lying? His or her lips are moving!!

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    1. You are right Rick V., the all lie to get elected. When Trump was running for president he sad he was going to make the first $25,000 for single and the first $50,000 for a married couple tax exempt. Just think how much this would of helped the middle class. But what happened? They found out if they did that anyone with taxable income above $150,000 would have to pay more in taxes to make up for the lost revenue. Trump’s tax bill also, got rid of the personal exemption for each family member and limited deductions for state taxes paid. So doubling the standard tax deduction was not really a true doubling. Theses changes actually raised some families income tax burden. But they did get rid of the alternative minimum tax saving Trump over $30,000,000 and the rich over $18,000,000,000 per year. What Mark Twain said years ago is proving truer each and every year. “If voting made any real difference they would not let us do it.”

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  2. I have said it before, if you raise taxes on corporations they just raise their prices and the customers end up paying the additional tax. I do think Social Security needs to be means tested. Anyone who has retirement income 3 times the national family income does not need a SS check. They where paid well during their working years and if cuts have to be made so be it. I know plenty of retirees who are living better in retirement than they did during their working years, because they now have access to their 401K and IRA funds. Good for them, I wish I would of had income above $35,000 per year, with my average being $12,000 per year but I still have lived a good life to age 64. We all pay taxes every day and see very little return. I know people with no kids who complain about property taxes paid for schools that they will never send any children to. I also believe that the tax system needs to be fixed so single people do not have to pay more in taxes than a married couple for the same exact family income.

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