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I'm in Monday's @wsj writing about Joe Biden's Social Security plan. Biden says the right things about the need to save Social Security. But his plan adds just 5 years to Social Security's solvency. Why? /1 https://www.wsj.com/articles/the-hidden-trap-in-bidens-tax-hike-11603052904?mod=opinion_lead_pos6
/2 Biden's plan includes large tax increases, which hit the rich immediately & will hit the upper middle class as the plan is fully implemented. The all-in US top marginal tax rate could hit 60% when state/local taxes are included.
/3 But Biden's plan spends nearly 2/3rds of its tax increases on boosting benefits, not paying for the benefits Social Security already has promised but can't afford to pay. Social Security would still be insolvent by 2040, meaning more tax increases are on the way.
/4 Some of Biden's benefit increases make sense, such as for low earners and widows. But do high-income retirees need larger COLAs? Should govt employees have the Windfall Elimination Provision repealed? These $ would be much better used to extend Social Security's solvency.
/5 I'm happy to see any plan for Social Security reform. But Social Security needs a better thought-out plan than VP Biden offers.
