At last year’s State of the Union, President Joe Biden memorably called out Republicans for their support for Social Security cuts.
Reportedly, Biden is considering focusing on Social Security again in this year’s State of the Union address — by demanding that millionaires and billionaires contribute their fair share. This is both wise policy and winning politics, particularly if Biden pairs it with a call to expand Social Security’s modest benefits.
Social Security is strikingly superior to its private sector counterparts. It is more efficient, universal, fair and secure. The system’s one shortcoming is that benefits are too low, averaging only $1,770 a month or $21,240 a year. That’s low in absolute terms and by international standards. It does not replace enough wages to allow Americans to retire without drastic declines in their standards of living.
Expanding those modest benefits is a solution. With pensions in rapid decline and 401(k)s inadequate or nonexistent for all but the wealthiest, our country is facing a retirement income crisis. Expanding Social Security is a solution to that crisis.
Currently, the wealthiest Americans do not contribute into Social Security on their wage income above $168,600, or on any of their unearned investment income. If we require millionaires and billionaires to pay in all year long on all of their income, just like the rest of us, we can afford to protect and expand Social Security’s modest benefits. Doing that will help address today’s income and wealth inequality, a primary cause of Social Security’s projected shortfall.
Democratic, Republican, and independent voters are all united in support of protecting and expanding Social Security. Democrats in Congress have answered that call by championing several Social Security expansion plans. These include the Social Security 2100 Act, sponsored by Rep. John Larson (D-Conn.) and co-sponsored by nearly 90 percent of House Democrats, and the Social Security Expansion Act, championed by Sens. Bernie Sanders (I-Vt.) and Elizabeth Warren (D-Mass.).
None of these bills have a single Republican co-sponsor — even though Republican voters overwhelmingly support their provisions. Instead, Republicans (along with a small number of corporate-friendly Democrats) are pushing for the creation of a fast-track commission designed to cut Social Security and Medicare behind closed doors. Speaker Mike Johnson (R-La.) has said such a commission is a top priority, and House Budget Chair Jodey Arrington (R-Texas) has demanded it as a condition of keeping the government funded.
Ninety-four percent of Republican voters oppose Social Security cuts, and 72 percent want to expand benefits. But Republican politicians have a different priority: Cutting benefits to make sure their wealthy donors will never have to pay their fair share into the system.
This year’s State of the Union is the perfect opportunity for President Biden to expose this division between Republican politicians and their voters. During the address, Biden should call for expanding Social Security and paying for it by requiring millionaires and billionaires to contribute at the same rate as the rest of us.
Just as Biden challenged Republicans last year to join him in opposing Social Security cuts, this year he should challenge them to join him in support of expanding benefits. Given that most congressional Republicans are Grover Norquist acolytes who have pledged not to raise a single penny in taxes on the wealthy, they are likely to refuse. This will show voters which party stands with them, and which party stands with the billionaire class.
It will also box in Donald Trump. Unlike many of his fellow Republicans, Trump claims to oppose Social Security cuts — although his record as president, when he proposed cutting benefits every single year, shows otherwise. But Trump has stated he opposes expanding benefits, giving Biden a clear point of contrast.
In 2020, Biden ran on protecting and expanding Social Security. The State of the Union is the perfect opportunity for him to remind the American people of that promise. He should let the American people know that when he is reelected, he will work with a Democratic Congress to expand Social Security for all current and future beneficiaries.
Instead of allowing Republicans to hide behind closed doors and push for cuts, Democrats should ask the voters to elect them so they can expand Social Security. The next place to highlight that stark difference between the parties is on March 7, at the State of the Union address.
Nancy Altman is president of Social Security Works.