Action 61 Defend and Fix Social Security

Mar 7

Background: Social Security has a ginormous trust fund – around $3 trillion dollars. You have probably heard that the fund is in trouble and might not be able to pay 100% of its obligations in the future (after 2033), although it will be able to pay a large fraction of them. Here are the reasons for an impending shortfall:

· the number of retired workers has grown rapidly, as members of the post–World War II baby boom continue to retire in increasing numbers.

· People are also living longer, drawing on their SS income for more years,

· Birth rates are lower than they used to be, meaning there are fewer young workers paying into the system.

· Revenue is collected only up to an income of $176,100 currently. While this figure rises with inflation, it’s insufficient to offset the other factors listed.

How to fix this problem? Republican solutions:

1) Those “champions of democracy”, the oligarchs, have been trying for decades to privatize the huge SS trust fund and charge a management/administration fee. What a bonanza for them! There is no way that this solution would raise additional revenue for the fund, in fact it risks speculative investing and a collapse of the entire system.

2) Trump and Musk have made the absurd and upside-down decision that they can solve the funding problem by gutting the social security administration. In his address to Congress, Trump wove an elaborate lie about the fraudulent payment of funds to 200-year-old recipients. Musk has called the department “the biggest Ponzi scheme of all time.” Not true at all. Actually, it is a typical insurance arrangement. The real reason they make this absurd claim is so they can convince us ignorant voters that there is “waste, fraud and abuse” in the system so we will look the other way as they loot the fund by privatizing it. As far as fraudulent payments are concerned, less than 1% of Social Security payments are paid in error. This is fewer than errors found in private retirement systems. Musk hasn’t bothered to demonstrate that gutting the workforce will in any way improve the efficiency of the department. However, it will most certainly curtail access to services, undermining political support for the system, which is the whole point. Note the recent announcement that newborns in 5 states will no longer be getting their SS numbers in the hospital but would have to visit a SS office. (see extra credit) (this has since been walked back for Maine, but not the other states, which are Arizona, Michigan, New Mexico and Rhode Island - all with Democratic governors)

3) Raise the retirement age again, in hopes that people will draw from the fund for a shorter period of time (and die off before they collect the full amount they would have been owed.) A solution favored by some “work ‘til you die” Republicans.

There are at least two better ways to assure solvency of the trust fund, and they have been known for years!

· Immediately raise the income level beyond which no further SS tax is taken (and keep raising it with inflation). For example, if the income were raised from $176,000 to $250,000 (including capital gains and dividends), the fund would remain solvent for 75 years. This is not likely to be popular with upper-middle income voters (those currently earning more than $176,000), but most people would not see any change at all in their SS tax.

· Keep the current income level at $176,000 beyond which no further SS tax is collected (rising over time with inflation), BUT set an income figure beyond which SS tax would start to be collected again. This “donut hole” proposal was originally proposed for incomes over $400,000. No matter what level is set, it will be opposed by the greedy billionaires, but the rest of us will not be affected.

The Social Security network of support in our country is far too important. The funding issues that it faces must be addressed, but with the goal of increasing the fund and stabilizing the department, not gutting it.

Actions (2 of them)

1. Contact (call, email, or write) your congress critters with two simple messages:

1) Reverse the cuts and restore the efficiency of the Social Security Administration. Maine people expect and deserve an efficient and responsive agency with a local presence.

2) The Social Security Trust Fund is NOT a place to go looking for the plutocrats’ desired $4.5 Bn in tax cuts for the wealthy! HANDS OFF THE SOCIAL SECURITY FUND except to raise revenue for it. You are watching and will hold them to account. Fix the problems with the trust fund by having those who can afford it contribute more.

2. Social security is an important “hot button issue” for Maine seniors and those with disabilities. You probably know a few folks for whom SS payments are important. Talk to them about the issue. Show them Robert Reich’s engaging YouTube (the first thing under Extra Credit). Help them make calls as well. Legislators LOVE to hear personal stories, it makes things real for them.

Contact:
Senator Susan Collins: Email: www.collins.senate.gov/contact/email-senator-collins/form

Phone: (202) 224-2532 (DC office), (207) 945-0417 (Bangor office)

Senator Angus King: Email www.king.senate.gov/contact

Phone: (202) 224-5344 (DC office), (207) 945-8000 (Bangor office)

Representative Jared Golden: Email: golden.house.gov/contact

Phone: (202) 224-3121 (DC office), (207) 249-7400 (Bangor office)

Representative Chellie Pingree: Email: https://pingree.house.gov/contact/

Phone: (202) 225-6116 (DC office), (207) 774-5019 (Portland office)

Urgency: As soon as you can. And sustain this action until the SS Trust Fund is stable.

Extra Credit:

https://www.youtube.com/watch?v=GfZuB7XSFyshttps://www.ssa.gov/policy/trust-funds-summary.html

https://www.mainepublic.org/politics/2025-03-07/feds-cancel-maine-parents-ability-to-register-newborns-for-social-security-numbers-at-hospital