BEWARE: Social Security 'reform'

Social Security is in trouble. Rep. Sam Johnson, R-Texas, has proposed a reform plan that will make serious cuts to Social Security. Under this plan, cost of living benefits will be eliminated, the inflation rate is being lowered through a new formula, the retirement age will be raised to 69 and wage earners making more money will see their benefits reduced, even though they contributed more during their working years. The idea behind this is to begin to fix the national debt. Congressman Labrador referred to this kind of move as a “hard choice” during his town hall meeting in Coeur d’Alene last June.

Congressman Labrador, wouldn’t we gain much more money fixing the corporate loopholes that allow Fortune 500 companies to keep $2.4 trillion in profits (somewhere around $700 billioN in unpaid taxes) in foreign tax “havens,” leaving the middle class to make up the losse? Companies do this to avoid the U.S. corporate tax rate of 37 percent (before deductions); the international average is 25 percent. President Obama proposed a 19 percent corporate rate to try to bring profits back to the U.S. Congress blocked this plan. President-elect Trump wants to lower the corporate rate to 15 percent (lower than most countries’ corporate rate and lower than many U.S. citizens pay).

Even if passed, we still need a law ensuring that corporate profits are taxed here. Ending corporate tax havens might save Social Security. Congressman Laborador, let’s fix tax havens before cutting benefits to the middle class.

BARBARA SCHMICH

Coeur d’Alene