Buster Fixes Social Security

1. Social Security does not contribute to our "national debt." There are many things that go into the official calculation of our debt, but Social Security ain't one of 'em.

2. Social Security is not "going broke." In fact, the Social Security Trust Fund is growing and enjoys a healthy surplus, for now.

3. The so-called "problem" is all of us Baby Boomers retiring and living longer, combined with lower birthrates and a smaller workforce behind us. We're gonna take a lot out of the system, and there's not gonna be as much paid into it. Unless something changes, the Trust fund could be depleted in 25 years or so.

4. The "fix" is simple enough: We increase Social Security revenue, or we reduce benefits, or some combination of both. (Or if you're a Tea Bag Libertarian wing-nut, you just kill the program altogether.)

5. Social Security has not had an increase in FICA payroll tax rate since 1990. It's been 6.2% for employees, and 6.2% for employers for the past 20+ years. That might've been OK as all of us boomers were coming through the system like a squirrel through a snake. Maybe you don't need to raise rates if you can increase the number of workers. But times have changed, everything is more expensive, and the old math doesn't work anymore. We must raise more revenue for Social Security. Imagine if you had no increase in pay rate since 1990. How would that have worked out for you?

So here's the Buster Gammons Social Security Fix:

Let Obama enjoy his temporary cuts in payroll tax, but they must be temporary and they must expire. Then we raise the payroll tax rate to 6.7% on both employees and employers. That's half a point, $500 a year on $100,000 income, or $42 a month. That's obviously affordable and, according to experts, would close half the gap for the next 75 years.

We also raise the cap on income subject to FICA tax to $250,000. It's currently $106,800. Higher-income individuals are getting an unnecessary break. Raising the income cap to $250 K will probably take care of the other half of the shortfall. (FYI -- totally removing the income cap closes the gap entirely.)

If there's any remaining gap, it'll be small. We'll fiddle on the benefit side with the yearly cost-of-living-adjustment (COLA) until we get it right.

But basically, it's just increase the rate, increase the cap. That'll do it.