Democrats, looking forward to possible Congressional and White House victories in 2020, have embraced expanding Social Security after years of defensively fending off privatization and cutback threats. The Social Security 2100 Act, with 209 co-sponsors, is waiting in the wings. It would make needed revenue increases, including raising the cap on labor income taxed, to stabilize Social Securityâ€™s finances for seventy-five years. It would also mildly expand benefits.
On the campaign trail, all of the Democratic Party candidates have addressed Social Security. Elizabeth Warren has proposed going beyond the Social Security 2100 bill by adding a tax to investment income, which is a bigger portion of the income of the rich than labor income.
Whatâ€™s missing, though, from the Democratic proposals is a way for people to use their 401(k), IRA, and other retirement savings to increase their Social Security benefits.