Columnist misstates Social Security impact

Veronique de Rugy is after Social Security again. Her opinion pieces for the Daily Herald share a common thread: “entitlements” are responsible for slowing economic growth, inflation, etc., etc. Certainly not our out-of-control military spending.

And our tax structure, according to de Rugy, is just fine. Forget that the CEO-to-worker compensation ratio has gone from 31-to-1 in 1978 to 281-to-1 in 2024. And we’re minting new billionaires at a rate of one each day.

A 30-second Google search reveals that “Based on recent analyses of IRS data, the effective federal tax rate for billionaires is significantly lower than that of the average American taxpayer, often falling below 8.2% to 10%.

This “true” tax rate, which includes the growth of their wealth (unrealized capital gains) as income, contrasts sharply with the top statutory income tax rate of 37%.”

But the real problem with de Rugy’s analysis is what she (purposely?) fails to mention.

The Social Security tax cutoff is $184,500. Employees and employers each pay a 6.2% tax on earnings up to this amount. Any income earned above $184,500 in 2026 is exempt from the Social Security portion of the FICA tax.

SSI is funded by the poor and the middle class.

Maybe there’s a reason that progressives say the rich aren’t paying their fair share.

Tim Chapman

Arlington Heights