Hey kiddos, Mom and Dad here.
Let’s talk turkey – specifically about those turkeys who want to cut Social Security benefits. What’s up with that?
Well, it sure as heck isn’t because of the deficit. Social Security’s trust fund has a $2.7 trillion surplus right now, which is enough to pay everyone’s benefits in full for another 25 years. If anyone tells you Social Security is going broke, they’re blowing more smoke than a chimney.
Here’s the reality: Social Security would pay full benefits forever – not just to us, but to you, and even your kids (hint, hint) — if millionaires simply paid the same Social Security tax rate as most people. Heck, we could even afford to improve Social Security benefits a bit.
Right now, everyone pays Social Security taxes on the first $118,500 they earn, which means most people pay Social Security taxes on their whole paycheck. But a whole lot of wealthy people — folks with bigger paychecks that most of us — don’t pay a dime in Social Security taxes above that amount.
Not to get all parental — it’s your life — but this is important stuff. Because unless you tell Congress to “Scrap the Cap,” they could cut Social Security benefits — and we might be movin’ in.
Mom and Dad