For years, we’ve been told that Social Security insolvency is the result of demographics — the population is aging, and the birth rate is declining. This leaves fewer workers’ taxes to fill Social Security’s coffers, which are used to pay benefits.
A CBS News report says there’s a third factor contributing to the cause — widening income inequality.
The article notes that over the past few decades, “incomes of higher-paid Americans have soared, far outpacing those of low- and middle-class workers.” This affects Social Security because the program taxes only annual earnings up to $184,500. This means the program loses out on “the faster income growth among top earners.”
Many of the proposals to shore up Social Security call for “scrapping the cap” — and making high-wage earners pay their fair share.
Council of Seniors is Here to Help Older Americans
Older Americans worked long and hard and deserve to live a comfortable retirement free from financial strain.
All of us here at the Council of Seniors want to improve retirees’ financial futures – and that starts with Congress enacting The SAVE Benefits Act. The passage of this bill can make up for Social Security cost-of-living adjustments (COLAs) that have let you down in recent years. If it passes, $581 will be returned to eligible seniors.
Sign our petition right now to show you’re on board with our effort.