U.S Senator Mark Begich says he knows how to fix the future funding shortfall of Social Security, though some say he’s proposing a massive tax hike.
Sen. Begich(D-AK): “Well I’ve introduced a piece of legislation to preserve and secure social security into the future. The idea is, take it off the off the table, Social Sec has not been part of the deficit, has never caused a dime of the deficit, but we also still need to get it sustainable. As many know, by 2037 Social Security will only be able to pay out 75% of its benefits.”
Begich said that his proposal will make Social Security solvent for 75-years, saying that one prong if the proposal calls for inflation adjustments more accurately reflect the costs incurred by senior citizens, and makes sure that “everyone pays in fairly”..
Sen. Begich (D-AK): “Right now, in a calendar year, once you hit about $113,000[a year] any dollar after that, you pay no social security on that. So what we do, make it just like Medicare that everyone pays in no matter what your income levels are. So if you make more than $113,000, you still pay in for the remainder of the year.”
Begich’s bill, however, would result in a larger tax increase than the one congress is try to avoid at the end of the year.
Under Begich’s bill, eliminating the income cap would allow benefits to go up for high-income tax payers as well.