The Social Security Fix: End Corporate Welfare


With momentum building to rein in record budget deficits, Democrats are sharply divided over whether to tackle Social Security by raising the retirement age and/or raising the income ceiling that is taxed from the first $106,800 of wages to the first $170,000.

Senator Majority Leader Harry Reid and Sen. Chuck Schumer are lining up against such measures and Reid scheduled a rally on Capitol Hill on Monday to show support for Social Security and opposition to cuts in benefits.

Bur why are the only options on the table to cut or not to cut what is already a meager wage replacement scheme? Moreover, we need to acknowledge that our personal and federal financial deficits are more a function of corporate tax dodges than reckless spending. How about actually taxing the companies that got rid of pensions as a way of bankrolling more generous Social Security benefits, along with forcing them to turn 401(k) plans into real pensions?

Let’s face it, while the working class is struggling to make ends meet and unemployment remains stubbornly high, the corporate class is doing just fine. U.S. corporate profits hit an all-time high at the end of 2010, according to data from the federal Bureau of Economic Analysis. Corporations reported an annualized $1.6