Regarding the 2022 elections, I totally disagree with the pundits who thought that the Democrats did better than expected. I believe that they could have done even better if they had been more precise in getting their messages out. The following are the categories where they could have done better: Crime! Inflation! Abortion! Social Security! For the category, Saving Democracy, they did just fine. My focus will be on just one of those categories: Social Security and the Republicans desire to cut or eliminate it and who will suffer and who will benefit by such action.

Social Security – But let’s get to the Republicans idea to curb excess spending. They believe that in order to balance the budget, entitlements such as Social Security must be cut or eliminated. In 2022, it is projected that an average of 66 million Americans per month will receive a Social Security benefit, totaling over $1 trillion in benefits paid during the year. The Republicans refer to Social Security as an entitlement, defined as “any government-provided or government-managed benefit or service to which some or all individuals are entitled to by law.”

It’s as if the Republicans believe that the government is simply giving away money and receiving nothing, causing the government to go broke.

In reality, Social Security is not an entitlement. The government is not taking their own funds to pay retirees. This is money that was deducted from our paychecks and paid to the government, which was to hold it for us until we retired and, at such time, it would be paid back to us on a monthly basis. In terms of money, what are we talking about? For every pay period, Social Security tax or F.I.C.A., currently at a rate 6.2%, is deducted from our salary. This rate has been in effect since 1990. From a calculation point of view, the median average earnings for 2022 is $1,070 per week. To simplify, if we assume the weekly salary is $1,000 per week or $52,000 yearly, the Social Security Tax withheld is $3,224.

But that’s not all. The company you work for must match it, so the total in your account becomes $6,448. Let’s assume you began working at age 25 and retire at age 65, thus working for 40 years, The total accumulated in your account would be $248,960 ($6,448 x 40 years). This is before any calculation for interest. If we had calculated with the average weekly salary of $1,500, the Social Security tax accumulated in your account would be $373,440.

Based on the above, the Social Security benefits you receive when retired are not an entitlement but in reality, a repayment of what you previously had paid. For Medicare, the same applies.

The Republicans position states that if the Social Security tax was eliminated, you would have more money in your pocket and, assuming you don’t spend it, they propose that you invest it, like having your own private retirement account. Sure! During these difficult financial times, invest it instead of putting food on your table. But who really benefits from this elimination of the Social Security tax? What about the corporations?

In the above example, we assume the weekly salary is $1,000 per week or $52,000 yearly, The Social Security Tax withheld is $3,224, which the company matches. If the company is relatively large, assuming a work force of 1,000 employees, their yearly savings would be $3,224,000 ($3,224 x 1,000). And that number is corporate savings for only one year

How about the yearly savings for some major corporations? For example, Walmart, with 2.2 million employees, would save over $7 billion yearly. Companies with over 325,000 employees would save over $I billion dollars. Those companies would include Yum! Brands, owners of KFC, Taco Bell and Pizza Hut, McDonald’s, IBM, UPS, Kroger, Home Depot and Hewlet Packard. As for other large companies, there’s so many more and their savings would be only in the hundreds of millions.

Republicans are for the little people. That’s what they keep telling us and, as we all know, they never lie. Social Security must be saved. So many people depend on it. We must not forget: Democracy is a government of the people, by the people and, most important, FOR THE PEOPLE. Not for corporations.

Alvin Goldberg

Great Neck