This was written several years ago, so the numbers are out of date, but the principle is unchanged. 

“Social Security is going bankrupt!”

“You can’t depend on Social Security!”

“It was never intended to be enough to live on; just a supplement.”

“We’ll have to cut benefits or it’s going to collapse.”

We have been hearing all of these things for decades.  It’s a load of crap, and it always has been.  The Social Security Trust Fund, as of December 31, 2019, had a balance of $2.9 trillion dollars.  The Fund is solvent, and is in no danger of being depleted anytime soon, unless a demagogue like Trump and his craven allies find a way, in the face of public opinion, to slash its revenues.

This is one of the “big lies” expounded by conservative think tanks over the years, designed to make the American people believe in something that is inherently contrary to their own best interests.  The “big lie theory” is simply that, if you repeat a lie often enough, people will start to believe it, even when there is no evidence to support it.  Adolf Hitler, Joe McCarthy, Donald Trump; these men were (and are) huge proponents of the “big lie.”

What is true is that, in order to keep our seniors living in comfort, above the poverty line, and to ensure an adequate revenue stream in the face of demographic realities, we will need to increase both benefits and revenues.  Both goals can be easily accomplished by making all income subject to the Social Security tax, rather than just wage income for those making less than $142,800 (the 2021 wage base.)

The revenue mechanism for FDR’s Social Security has been the same since its inception – workers, and their employers, pay a straight tax on their wages during their working life, and collect benefits when they retire, with the benefit amount based on their lifetime earnings.  That funding mechanism has provided seniors and other defenders of the system with the most effective defense against conservative attempts to weaken or destroy the system.  You can’t take away our Social Security because we earned it!

Unfortunately, the system’s funding mechanism is also its Fatal Flaw.

You’re not entitled to a comfortable retirement unless you earn it, and if you spend a lifetime working in low wage jobs, you’re fucked.  If you never earned more than $25,000 a year over 30 years of working, you’re going to get only $872.50 a month when you retire.  If you had a six-figure income, your benefit (at normal retirement age) will be $3,113.00 a month.

That’s the Fatal Flaw – benefits are not based on need; they are based on earnings.

And if you’re a low wage worker, you don’t have to wait until retirement age to get screwed – you spend your whole working life getting screwed.  The 6.2% tax on wages is a lifetime burden on workers – a significant portion of their earnings.  For those earning more than the $142,800 base, the tax is a pittance, and if they have investment income, it is not taxed at all – there is no Social Security Tax on interest, dividends or capital gains.  The Social Security Tax is a regressive tax, which falls most heavily on those least able to afford it.

How can we change that?  Here’s my radical, left-leaning solution.

Virtually all Progressives, and the majority of the general public, now espouse the belief that we are all entitled to quality health care; no one should have to earn that right.

Most would also agree that every child is entitled to a quality education, regardless of their family’s income.

I am adding this to my list of core beliefs:  every senior is entitled to a comfortable retirement.  No one should have to earn that right.

So, how do we accomplish that?  Let’s replace our current system with an Old Age Pension, to which every person of a certain age will be entitled.  Do away with the current tax on wages, for both employees and employers (big business will love that!) and fund the pension with a progressive tax on all personal income, and a progressive tax on corporate income.

The progressive income tax is the cornerstone of the effective funding of all government entities, and all government programs.  It is the fairest of all taxes, because it is based on the ability to pay.  Why not use a progressive tax to fund retirement benefits, and put an end to a system that is not based on a person’s needs and is radically skewed to favor the wealthy?