MarketWatch: What do you envision as the future of Social Security?
Bernie Sanders: For many years now, we have had Republicans, led by former Speaker Paul Ryan and currently Mitch McConnell, and a lot of the media saying “look we are an aging population, we can’t afford to maintain Social Security, we are in one way or another going to have to cut it back” — maybe by changing CPI, maybe by raising the retirement age, maybe cutting back on benefits, whatever it may be. I think there has been a lot of misinformation about the status of Social Security, its financial condition and how we go forward into the future.
I look at this issue for a start by saying, does Social Security have a financial problem now? And the answer is it does. Right now, despite the fact there is $2.8 trillion in the trust fund — a lot of money — the fact is that trust fund will be depleted in 15 years. But having said that, that does not mean as people make it out to mean that there is no money to pay out Social Security benefits. Social Security would still be able to pay out 79% of the benefit owed to eligible Americans because of the revenue coming in every day. So we have a gap that we have to fill. That is number one, and that is absolutely doable.
Number two, as I look out into the world I see a lot of elderly people who are struggling economically. About 20% of seniors are trying to get by on less than $13,500 a year, which to me is impossible to even comprehend how anybody can do that. You have a lot of other seniors who are cutting their prescription drugs, pills, they’re unable to feed themselves properly. You go around the country and you find that the Meals on Wheels program has long waiting lists because people need at least one decent nutritious meal a day. So you have a lot of need out there and in my view Social Security benefits are too low, much too low. My Republican friends want to cut Social Security. I want to do two things: I want to expand Social Security benefits, make them stronger, provide more money for our seniors, especially the lower-income seniors, and I want to make sure that Social Security trust fund is solvent well beyond the next 15 years. Our legislation makes it solvent for the next 52 years.
We do that by lifting the cap. Right now, if you are a billionaire you pay exactly the same amount of Social Security taxes as somebody who makes $132,900 a year and that is absurd. Trump pays his entire Social Security tax contribution in half of one day and that is totally absurd. So you make the payroll tax more progressive by lifting the cap for people earning $250,000 a year, including capital gains, profits and dividends. When you do that you increase benefits, extend the life of Social Security for 52 years. I think that’s what the American people want and what we’re going to fight for.