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Social Security
Hi, I’m Walter Hofheinz. I’m running for U.S. Representative for the 32nd District of Texas.
Social Security provides the only economic security in old age for the vast majority of the U.S. population --
for more than two-thirds of those 65 and over, Social Security provides half of their income, and it provides 90% of the income for more than one-third.
Social Security is an insurance program, not an investment program. It shifts part of future economic risks from the individual to the public as a whole, not just for old age, but for disability, and children surviving a parent. It cannot be replaced by a private system. A private system simply cannot provide the necessary insurance component we provide to each other through government.
While we hear much about the purported financial problems of social security in 10 years, 20 years, or 30 years, it is a problem easily solved. Sufficient funding depends on appropriate tax rates, the base subject to the tax, and the growth of the U.S. economy. At present, Social Security can be made sound by simply eliminating the cap on the amount of earnings subject to the tax, which should be done immediately.
In addition, however, income from investments is not taxed in the Social Security system at all. There should be no discrimination in our tax system based on the source of income. All income, not just wages, should be subject to the Social Security and Medicare taxes. Such a change would allow full funding of the system, and allow a reduction in the social security tax rate.
An alternative solution to full program funding has been proposed: reducing or eliminating benefits for those with sufficient resources. I am opposed to complete elimination of benefits for anyone. Some reduction, however, might make sense, since the risk insured against is not only getting old, but getting old without enough to live on.
We have a choice -- we choose to say you’re on your own in old age, if you don’t have enough to live on, tough -- or we can choose to say we’re all in this together, and each of us, regardless of financial fortune, should be able to live in dignity, not poverty, as we age.
We’re on the wrong path. It is time to stop and set out for the right path, a path of principled use of government for the public good rather than the good of the few.
I’m Walter Hofheinz. I’m running for the 32nd Congressional District of Texas.
I ask that you join me in working to create more opportunity, a better, more secure quality of life, and a fairer and more just society for us and those who come after us. Please visit my website and sign up for emails, follow on Facebook, and ask others to work with us.