Senator Elizabeth Warren of Massachusetts unveiled a plan on Thursday to give all recipients of Social Security benefits an extra $200 per month and to pay for it by raising taxes on the rich, her latest economic proposal to redistribute wealth in the United States.
….The largest portion of her plan, raising benefits for 64 million recipients by $200 a month, would cost more than $150 billion in its first year. The plan would also fundamentally alter the funding structure of the program, forcing the very rich to pay much more into Social Security in taxes than they would get out of it in benefits, while most Americans would get far more than they pay in.
Hmmm. I like the general idea, but I don’t see much point in raising everyone’s benefits. The middle class and the affluent don’t really need an increase, after all. I’d prefer to add, say, $300 to the benefits of the bottom third and leave it at that. This would cost half as much and do more overall good.
Politically, of course, it would once again leave out the middle class from a Democratic proposal to expand the safety net. I suppose the politics of Warren’s proposal might outweigh the pure economics.