Fairness for Social Security

One of the greatest but little known inequities favoring the rich involves, ironically, a government program originally established especially for the working poor. Everybody pays into the Social Security fund a regressive, flat 6.2 percent of their yearly gross wages and, more importantly, only up to $118,500 of those wages. Thus, billionaires pay no more than anyone earning $118,500 yearly, only twice anyone earning $59,250, only four times anyone earning $29,625, etc.

For fairness, we should remove the $118,500 cap on earnings subject to withholding, thus imposing the same 6.2 percent rate on everyone’s total earnings. Spokane-based Avista Corp.’s chief executive officer, who earned $3,837,953 in fiscal year 2014, would pay $237,953 in Social Security taxes rather than the $7,347 he paid.

Removing the cap, even if maintaining the regressive 6.2 percent flat rate, would greatly extend Social Security’s lifetime. A September 2010 nonpartisan Congressional Research Service report stated, “If all earnings were subject to the payroll tax, but the base was retained for benefit calculations, the Social Security Trust Funds would remain solvent for the next 75 years.”

For fairness on such economic issues, we must elect Joe Pakootas and oust Rep. Cathy McMorris Rodgers in 2016.

Norm Luther

Spokane