Democratic U.S. Senate candidate Shenna Bellows today put forward her plans for expanding Social Security benefits. Bellows, the former director of the Maine ACLU, is running against GOP incumbent Susan Collins, in November.
If Republicans gain control of the Senate, Bellows warns the already-strained Social Security system will face further cutbacks and the threat of privatization. She points out that in 2012, 314,000 Mainers - nearly a quarter of the state's population - received Social Security benefits averaging just under $12,700 each.
"I've heard from Mainers across the state, for whom this is not sufficient - Mainers who are having to make difficult decisions between food and medicine," Bellows said. "I'm running for United States Senate because Mainers need a strong advocate for retirement security and fairness."
Speaking at a news conference at the state Capitol, Bellows said she supported expanding Social Security benefits in a responsible way, lamenting the fact that the payroll tax that funds Social Security payments only applies to the first $113,700 of income. The wealthiest Americans, she says, should pay their fair share.
"Right now, millionaires and even billionaires pay the same amount into Social Security as someone earning $113,700 a year," Bellows said. "We need to scrap that entirely to make sure that everyone pays their fair share, regardless of how many lobbyists they know."
Bellows voiced her support for the RAISE Act, which is currently being considered by the Senate. Under that proposal, an increase in benefits would be funded by a 2 percent increase in payroll tax on earnings over $400,000 a year.
Sandy Jaeger and her husband Ole are strong supporters of scrapping the cap, and were invited to appear at the Bellows event. They're a retired couple from Georgetown who say they are struggling to get by on their Social Security payments.
"I am a 78-year-old woman whose Social Security income is $655.80 per month," Sandy Jaeger said. She says they're lucky enough to have a modest nest egg, which they're forced to dip into regularly to pay medical, and other, expenses.
"We agonize over what it must mean to those in Maine who are compelled to live only on Social Security and have to make horrific choices that continue to place stresses on their emotions and strip away at their dignity," she said.
Bellows and her supporters say the Social Security program is under full assault from the GOP, including Sen. Collins. By virtue of her support for Senate Republican leader Mitch McConnell, Collins is accused of essentially being in favor of reducing Social Security payouts - something which the senator herself denies.
"I have long called for an increase in the minimum benefit," she says. "I think that if you've worked your entire life, you should not retire in poverty."
The problem, however, says Collins, is how to pay for this, given that the Social Security program faces significant financial challenges: For example, she says the disability insurance fund is slated to run out of money in just two years. Collins says imposing higher payroll taxes, however, is not the way to fix the problem, as that would hurt job creation.
"I think that would have harmful impact on many middle-income families and also on employers," she says, "because remember, employers are paying a share of that payroll tax as well."
GOP proposals to fix the Social Security problem also include means testing, and raising the retirement age. Collins says she's prepared to consider a variety of options when it comes to ensuring Social Security is there for future generations.