Wyden Says Trillions in Taxes Dodged by Ultra-Rich Could Fund Social Security Until 2100
"The ultra-wealthy are avoiding nearly $2 trillion in taxes every 10 years," said Sen. Ron Wyden. "That's where we ought to go to start making progress."
The Democratic chair of the Senate Finance Committee said during a hearing Wednesday that instead of tossing Social Security's sacred guarantee "in the trash" by cutting benefits, lawmakers should crack down on mega-rich tax dodgers as a way to keep the New Deal program fully solvent for decades to come.
"The ultra-wealthy are avoiding nearly $2 trillion in taxes every 10 years," Sen. Ron Wyden (D-Ore.) said during a Senate Budget Committee hearing. "That is enough to keep Social Security whole till the end of this century."
"That's where we ought to go to start making progress," Wyden added.
The senator's remarks came during a hearing titled "Social Security Forever: Delivering Benefits and Protecting Retirement Security," which featured testimony from Social Security Administration Commissioner Martin O'Malley and several expert witnesses.
Sen. Sheldon Whitehouse (D-R.I.), who presided over the hearing, used his opening remarks to blast GOP proposals to raise the retirement age, a change he said would "especially hurt low-income retirees."
Whitehouse, the chair of the Senate Budget Committee, acknowledged that some Republicans have pushed back on the notion that the GOP wants to cut Social Security benefits. But if Social Security benefit cuts "really are off the table," the senator said, "that leaves only one other option to prevent insolvency: raise revenue."
"There is no third option. And that means it's time to get to work identifying smart, fair ways to raise revenue, fund the Social Security Trust Fund, and preserve and protect benefits," Whitehouse continued. "Fortunately, there are solutions that would both extend Social Security solvency indefinitely with zero benefit cuts and make our tax system fairer, like my Medicare and Social Security Fair Share Act."
At today's @SenateBudget hearing, @SenWhitehouse slams Republican plans to slash $1.5 trillion from Social Security.
Whitehouse plans to strengthen Social Security by requiring the wealthy to pay their fair share! pic.twitter.com/nWRJt3hUWp
— Social Security Works (@SSWorks) September 11, 2024
Wednesday's hearing came in the heat of a presidential race in which Social Security has featured prominently, with Democrats warning that GOP nominee Donald Trump would push for deep benefit cuts if he's elected to another White House term.
During Tuesday night's debate, Democratic nominee Kamala Harris made the only mention of Social Security, vowing to protect the program that lifted 28 million people out of poverty last year.
Max Richtman, president and CEO of the National Committee to Preserve Social Security and Medicare, said in a statement following the debate that while Harris reinforced "her commitment to Social Security and Medicare," Trump "was mum on the topic."
"At least when Trump has nothing to say, he cannot compound his many conflicting and confusing statements about Social Security and Medicare—from calling Social Security a 'Ponzi scheme' to saying he's 'open' to 'cutting entitlements' and proposing to eliminate some of the taxes that fund Social Security," said Richtman. "Tonight's debate underlines the fundamental reality that one candidate in this race will truly protect Social Security and Medicare—and that is Kamala Harris."
According to the latest trustees report, Social Security is positioned to fully pay all benefits and administrative costs until 2035 and is 90% funded for the next quarter century.
Progressive lawmakers and advocacy groups have argued for years that the best way to ensure Social Security's long-term solvency is clear: make the wealthy pay their fair share into the program. Due to the payroll tax cap, millionaires stopped contributing to Social Security just 60 days into 2024.
"Warren Buffett stops paying into Social Security 30 seconds into the new year," O'Malley said during his testimony at Wednesday's Senate hearing, "and the people that clean these buildings pay in all through their paychecks."
