Social Securityby Representative Peter A. DeFazio
Posted on 2015-02-10
in the house of representatives
Tuesday, February 10, 2015
Mr. DeFAZIO. Mr. Speaker, this week, Americans making more than one
million dollars a year will get a tax break. Not because Congress
approved one, but because they've already reached the maximum amount of
income that is subject to the Social Security tax. That's right--those
making more than one million dollars have already reached the income
cap of $118,500, and we're not even six weeks into the year.
This gaping loophole allows billionaire hedge fund managers and corporate CEOs to pay a lower percentage of their income into Social Security than teachers, police officers and healthcare workers. Ninety- four percent of American workers pay Social Security tax on all of their income. But the wealthiest six percent are exempt from doing the same. By closing this loophole, we can make sure that every American pays exactly the same percentage of their income into Social Security.
Ending this tax racket for the wealthy also ensures that Social Security will continue paying full benefits to every single American who pays in. We have a choice: we can tell our children and grandchildren that their Social Security benefits will be cut in order to maintain a regressive tax that benefits only the richest six percent, or we can close this loophole and guarantee that if you pay into the program, you will receive the full Social Security benefits you were promised.
Unfortunately, this is not the conversation that has dominated Washington, DC in recent years. Instead, some of my colleagues in Congress would prefer to manufacture a crisis in order to privatize the entire system, leaving seniors' benefits at the mercy of Wall Street power brokers. They want you to think the system cannot be fixed and that Social Security as we know it is doomed. We can prove them wrong. If every American pays their fair share into the system, we can make sure the government fulfills its obligation to America's seniors.