Social Security cannot afford to pay all of the benefits it has promised. Beginning in 2017, it will run cash deficits that get bigger every year.
Very few Democrats have been willing to come out with a plan to fix Social Security given their irrational opposition to personal accounts for younger workers. One exception has been Congressman Bob Wexler (D-FL). Unfortunately, his prescription for reform—massive tax hikes—is more of the same from liberals like himself. His plan would force a repeal of the Bush tax cuts and include a 6% “surtax” on wages above the Social Security earnings cap. This would have the effect of pushing most dual-income married couples into a combined marginal tax rate of over 40%.
The system has a problem, and we need to fix it. Personal accounts are the solution.
Wexler Tax Increase Would Push Most Married Couples to Over 40% Bracket
Assumes married filing jointly households with 100% of income from wages, with husband and wife each earning half of the wage income of the household. Also assumes that pre-EGTRRA income tax rates are re-established.