John Larson's plan to expand Social Security has an extra benefit

By HELAINE OLEN | WASHINGTON POST | FEB 04, 2019 | 6:00 AM

Let's raise a coffee mug to Rep. John Larson, D-Conn. Larson finally found a good use for the so-called "latte factor," the idea promoted by financial scolds that claims we would all retire multimillionaires if only we could give up on small luxuries and put the money in the stock market instead. Larson's got a better idea: He thinks we should take that money and use it to shore up Social Security.

On Wednesday, Larson introduced legislation to raise Social Security benefits that also offers a plan to solidify the social insurance system's finances through the remainder of the 21st century.

In return for a small and staggered increase in the payroll tax, combined with doing away with the payroll tax cap on income in excess of $400,000, Larson's plan would offer an increased benefit to people at the lower end of the income spectrum, as well as notch future benefit increases to a slightly more generous consumer price index that takes into account the actual expenses elderly people face in retirement. (Hint: They spend much more on medical services than their younger cohorts.)

According to his calculations - which are backed up by the Social Security Administration's chief actuary - the tax increase would take about 50 cents a week from the average workers paycheck. As Larson frequently says, "It costs less than a Starbucks latte to fix Social Security."

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https://www.courant.com/opinion/op-ed/hc-op-olen-larson-social-security-0204-20190204-dzhreqdvujad5kwexlrirh6jdu-story.html