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Social Security and Retirement |
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Thursday, 26 October 2006 |
While I favor
securing Social Security, as discussed below, this is not enough to
ensure a secure retirement for Americans. Pension plans and savings
are the two other legs of the traditional retirement stool and both
have been undermined in recent years. Savings by Americans is at a
low while families struggle each month to pay their bills under an
increasing debt load. Indeed, in the first quarter of 1999, the
national savings rate turned negative for the first time since the
Great Depression. At the same time, companies have broken
long-standing pension promises to their employees and retirees,
undercutting the “economic fabric” of retirement security of
millions of people. Congress needs to take action to prevent
corporate raiding of retirement plans.
Social Security can be
protected by restoring funds to the Social Security trust fund. In
addition, the United States needs to eliminate the $92,500 income
ceiling for Social Security taxes. We should not tax American workers
any more for Social Security, but it is unfair that a CEO earning $10
million annually is not fully taxed on Social Security. Indeed,
currently, 6.2 cents out of every dollar of salary is taxed for
Social Security up to $92,500 – a limit put in place in 2003. This
flat tax is particularly burdensome on low- and middle-income
workers. Lifting this ceiling and taxing all income would secure
Social Security well into the next century.
For more see:
Social
Security
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