Lisa's Social Security plan gains support
By simply requiring upper-income Americans to pay the same tax rate as middle-class families, Democrat Lisa McCormick says Social Security's benefits could be expanded, and its funding would remain in balance for decades beyond the longest projections.
McCormick recently enlisted residents throughout New Jersey to help advocate her plan to require upper-income Americans to pay the same tax rate as the 94% of American working middle-class families who make less than $132,900 a year. McCormick says this adjustment will keep Social Security solvent in perpetuity.
"Social Security is funded through deductions to everyone’s paychecks," said McCormick. "We pay in while we’re working, and then collect benefits when we retire but not everyone pays equally."
McCormick, who is a candidate for Union County Surrogate in the June 4 Democratic primary election, has been calling for congressional action to make the nation's retirement system stable, solvent and secure.
When she announced that Social Security benefits were increasing by 2.8 percent in 2019 and that the maximum amount of earnings subject to the payroll tax rose to $132,900 up from $128,400, McCormick was advocating 'Scrap the Cap,' which would include all income in FICA.
"Increased payments to retirees will supercharge the American economy," McCormick said. "There was no Social Security increase in 2010, 2011 or 2016 and in 2017, Social Security recipients got an raise of only 0.3 percent. My plan would allow greater benefits, a lower retirement age and long term financial stability."
A number of authorities have confirmed McCormick's plan to fix Social Security or proposed very similar approaches to the long term financial stability of the nation's retirement system.
"As a former U.S. Secretary of Labor, I know that the American standard of living depends on the strength of our social safety nets," said Robert B. Reich. "This is why I’m impressed by Lisa McCormick’s proposal to save Social Security and insure long term solvency of the nation’s pension system."
"While 94 percent of U.S. workers pay Social Security tax on every dollar in their paycheck, the very richest Americans avoid Social Security taxes on most of their money due to the program's cap on taxable earnings," said Reich. "To correct this, she recommends that we ‘scrap the cap’ so very wealthy Americans contribute to Social Security at the same tax rate as the rest of us. I completely agree."
Reich is the Chancellor's Professor of Public Policy at the Goldman School of Public Policy, University of California, Berkeley. McCormick discussed her Social Security proposal with Reich during a telephone conversation on April 11 and in an exchange of email messages.
McCormick's plan to fix Social Security has also been emulated or embraced the Economic Opportunity Institute, Social Security Works, the National Committee to Preserve Social Security and Medicare, the United Steelworkers, Americans for Tax Fairness, Patriotic Millionaires, Senator Bernie Sanders, Senator Elizabeth Warren, and others.
The add your name in support of Lisa McCormick's plan to fix Social Security, visit: http://lisamccormicknj.nationbuilder.com/fix_social_security