But Reichenstein said when you dig deep and do the math, Larson’s bill calls for an almost complete income-redistribution of the additional taxes paid on earnings above $400,000. “That’s not what Social Security was designed to be and we don’t want to change it to that,’’ he said.
“Given the projected deficit of the Social Security system, politicians should stop promising benefits that far exceed available revenues,” he said.
Reichenstein wants reforms that will more equalize the return on the dollar among lower- and higher-income workers, and make paying into the system worth it for those who work more than 35 years.
“We don’t want to discourage people who want to work, so my system would continue to give you benefits and let your benefits grow if you continue to work beyond 35 years,” he said.
He also wants to ensure that workers near retirement are not adversely affected by the reforms. Their benefits should be based on the lifetime taxes-to-benefits formula or benefits based on the old system, he said.
“We can fix his system, but we are going to have to make some major adjustments, and the sooner we make adjustments the easier it will be,’’ Reichenstein said. “The number one criteria is that they need to look at it and ask, ‘Is this in keeping with the spirit of FDR?”