The debate over Social Security funding, and whether Republicans threaten it or not, could be ended with a very simple expedient: Raise the income level that is subject to taxation for Social Security.
The wage base subject to the tax is $160,200. This means that upper-income taxpayers are paying a comparatively small proportion of their income into the Social Security fund, which is meant to pay retirement benefits for all of us.
It is possible, as Bob Harper suggested in his letter (“Social Security needs fixing,” Our Readers’ Views, Feb. 15) that raising the income subject to the tax will not be a permanent solution. As he correctly points out, the number of people paying into the system is decreasing, and will continue to do so. The solution to the diminishing number of contributors is to increase the proportion of people’s income subject to the tax. Raising the income level subject to the tax to, say, $500,000 will stabilize the fund for many years to come.
For many Americans, Social Security is a vital part of their retirement planning. For all of us, it represents a commitment to our society’s safety net. Reducing benefits for older Americans is not the way to balance the budget. Raising the limit on current taxation to fund Social Security is the best way forward.
