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UE/Labor Party On-Line Social Security Workshop


The Labor Party's Program
to Protect and Expand
Social Security

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Unlike most Republicans and a growing number of Democrats in Congress, the Labor Party opposes privatization and has a plan to make improvements:


Make EVERYBODY pay the same Social Security tax. Social Security is funded by a 6.2 % payroll tax that both workers and employers pay. This tax is only paid on wages up to $72,600 per year. If all people and their employers paid the social security tax on ALL their earnings, approximately 38 billion dollars per year extra would go into the Trust Fund. More than enough to solve any problems, more than enough to improve Social Security.

For example: In 1997 Jack Welch, CEO of General Electric Co. earned over 27 million dollars in wages, bonuses and stock option grants, yet he only paid social security taxes on the first $68,400 dollars! While we paid FICA tax the entire year, Jack Welch stopped paying after just six hours.


By scraping the cap we can ensure Social Security’s financial viability and put things back the way they were. The same "saviors" of Social Security raised the retirement age to 67 a few years ago. A higher retirement age especially hurts women and people of color who are less likely to have any other form of retirement income. LOWER the retirement age back to 65.


RAISE the employer tax on any employer that does not provide a retirement plan for their employees. Social Security was set-up to be one third of a persons retirement program, the other parts being savings and an employer paid pension plan. One half of all retirees would be living in poverty if they didn’t get Social Security, mostly because their employers never provided a pension plan. These employers should be punished by paying an additional tax.


There must be NO INVESTING any of our money to the stock market. This is a program for disaster. Even if a portion of the Trust Fund is invested, what will happen when the market drops. We would end up paying higher taxes to make up what was lost.



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