Trump and Musk's Billionaire Plot to Destroy Social Security
The solution is obvious and simple, which is why the nation's richest people hate it so much: Scrap the cap and make the wealthy pay a much fairer share in Social Security taxes.
World's richest man Elon Musk has revealed the truth about what he plans to do with his so-called Department of Government Efficiency (DOGE): Gut Social Security and Medicare.
Musk retweeted a series of posts by Utah’s Republican Senator Mike Lee, who dubbed Social Security “deceptive” and called for its dismantling. “Interesting thread,” Musk added.
On Thursday, Musk and his “DOGE” co-chair, Vivek Ramaswamy, went to Capitol Hill to discuss their plans. Republican lawmakers immediately announced that “everything is on the table,” including cutting Social Security and Medicare.
During the campaign, Musk said his goal was to cut $2 trillion — or about 30 percent — of the entire federal budget.
There’s no way to do this without cutting Social Security, Medicare, and Medicaid. Social Security alone accounts for almost a quarter of the total federal budget.
Ramaswamy has been even more explicit about their plan, saying in a CNBC interview that “there are hundreds of billions of dollars of savings to extract” from Social Security, Medicare, and Medicaid.
Elon Musk spent $277 million of his fortune to elect Trump. He bought the power to gut Social Security and give himself more tax cuts and tens of billions in government contracts.
Just to remind you: Neither Musk nor Ramaswamy was elected to his position. Which means they’re utterly unaccountable. (Musk and Ramaswamy will work in concert with budget-cutters in the Trump White House, with the support of a congressional DOGE caucus that’s now forming.)
They’re both multi-billionaires who couldn’t care less about Social Security. Meanwhile, you’ve probably been paying into Social Security your entire working life.
Republicans have been out to kill Social Security since its founding in 1935 because it’s one of the most popular and successful government programs ever created. It doesn’t only help retirees. It also keeps 26 million people out of poverty.
Republicans have used public concern about Social Security’s future solvency as a cynical excuse to demand cuts in benefits.
True, the trustees of Social Security — of which yours truly was once a member — say the program will be able to pay full benefits only until 2033. After that, Social Security will be able to dole out only about 77 percent of benefits.
But Social Security could easily pay everything it will owe to everyone for the next 75 years if the cap on income subject to Social Security taxes were eliminated.
That cap is set at $168,600 this year (it rises with inflation). That means that anyone who earns more than $168,600 this year pays nothing in Social Security taxes on the excess.
Elon Musk finished paying his 2024 Social Security taxes 14 seconds past midnight on January 1 of 2024.
Even a run-of-the-mill CEO earning $20 million per year pays Social Security taxes on less than 1 percent of their income.
Meanwhile, a typical American worker pays Social Security taxes on 100 percent of their income.
The Social Security trustees anticipated the current boom in boomer retirements. This is why Social Security was amended in 1983, to gradually increase the age for collecting full retirement benefits from 65 to 67. That change is helping finance the boomers’ retirement.
But the trustees failed to anticipate that most Americans’ wages would remain stagnant and how much of America’s total income would be going to the top.
Most of the American working population today is earning less than the Social Security trustees anticipated years ago — reducing revenue flowing into the program.
Had the pay of American workers kept up with the trend decades ago — as well as their growing productivity — their Social Security payments would have helped keep the program flush.
At the same time, a much larger chunk of the nation’s total income is now going to the top compared to decades ago.
But income subject to the Social Security payroll tax is capped. So as the rich have become far richer, more and more of the nation’s total income has escaped the Social Security payroll tax.
The rise in the amount of income above the cap due to inequality has cost the Social Security Trust Fund reserve an estimated $1.4 trillion since 1983.
The solution is obvious: Scrap the cap and make the rich pay more in Social Security taxes.
Bernie Sanders has come up with a plan that would eliminate the cap on earnings over $250,000 and also subject investment income to Social Security taxes. This would extend the solvency of Social Security for the next 75 years without raising taxes on 93 percent of American households.
But Donald Trump, Elon Musk, Vivek Ramaswamy, and the other billionaires who’ll be running the administration starting January 20 don’t want to pay their fair share to keep Social Security going. They’d rather kill Social Security.
Buckle your seatbelts. This is likely to be one of the biggest fights of the first year of the Trump administration. It’s also a glaring illustration of the difference between the American people and Trump’s rich and powerful lackeys.
If we want to ensure Social Security’s long-term future, and that working people can retire with dignity, we must make the wealthy — including the richest person in the world — pay their fair share.
