With regards to our current national budget, Social Security's tax revenue and trust fund reserves will provide enough cash to pay out promised benefits until 2033. At this point in time, the trust fund will be insolvent and incoming payroll taxes will bring in enough to pay for 77% of scheduled benefits. Within my first year as your next United States senator, I will propose the following solutions to correct this potentially devastating shortfall.
Eliminate the tax cap-workers pay into Social Security based on earnings of up to $117,000. Individuals who earn more than that don't pay Social Security payroll taxes on that amount or have it factored into their retirement benefit. The cap covers about 83% of all earnings. This change would result in payroll taxes on all earned income, instead of only a portion of them, and getting higher benefit payments in retirement. Eliminating the payroll tax cap would reduce 74% of the Social Security's shortfall.
Raise Social Security taxes-workers currently pay 6.2% of their earnings into the Social Security system, and employers pay a matching amount. If that tax rate was gradually increased to 7% a difference of 0.8% over a 8 year period, it would reduce the Social Security funding shortfall. For a worker earning $50,000 per year, this tax increase would result in paying less than $.50 more per week during each year the change was phased-in. Gradually raise Social Security payroll tax by less than 1% over a 8 year period will result in all Americans receiving Social Security payments.
I will work with the other 99 U.S. Senators to accomplish Louisiana's and our country's agenda.