Kerry Explains Means-testing Plan...Sort Of

September 9, 2003

Sen. John F. Kerry defended his strategy to save Social Security on NBC's August 31 Meet the Press. Kerry denies any consideration of allowing an option for individual accounts. Instead, he suggests creating a doughnut in the payroll tax scheme. Kerry's conversation with NBC's Tim Russert follows:

Mr. Russert: Let me turn to something else you said about Social Security. This is how Glen Johnson of the Boston Globe reported it in August in your hometown paper. The headline: "Kerry Hints at Reform for Social Security. 'Declaring 'I am blessed to be wealthy,' Senator John F. Kerry said that, if elected president, he would consider some form of means-testing for rich Americans as part of a broader review of ideas to shore up the Social Security system. ... Another idea Kerry said he would consider is raising the cut-off point after which people no longer pay into the system. Americans pay Social Security taxes only on the first $86,000 they earn in a year."

Sen. Kerry: Yeah.

Mr. Russert: 6.2 percent. So if you raise that cap, say from $86,000 to $120,000, a husband and wife making $60,000 each, you're going to raise their taxes up $2,000.

Sen. Kerry: No, I'm not. I'm not touching their tax. I wouldn't touch theirs. That's not what I said and let me...

Mr. Russert: Are you going to raise the cap above $86,000?

Sen. Kerry: Tim, let me be very clear. Let me very clear. Glen called means-testing something that I don't—it's not means-testing. I'm not for means-testing. I'm not for breaking anything in the Social Security compact that's existed from Franklin Roosevelt. I'll tell you what I won't do before I'll tell you what I'll do. I'm not going to privatize Social Security. I'm not going to lift the retirement age or make it harder for hard working Americans to retire. We ought to try to retire earlier in America and I'm not going to means-test. … I think we have to look at how we make it more progressive, and all I said was, "Today, there's a cutoff at $86,000." Now, I wouldn't start with the people at $86,000. I'd start with the wealthiest people in the country if you need to...

Mr. Russert: How much?

Sen. Kerry: I don't know yet. I have no idea….

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