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Wednesday, January 26, 2005

Social Security -- The Easy Fix

Without boring you with a lot of math and graphs, let me simply address this so-called crisis with this comment: there is an easy fix that will prevent any future problems with Social Security.

All we need do is simply raise or eliminate the cap on wages that are subject to the Social Security tax, which currently is an intensely regerssive tax. In 2005, only your first $90,000 in income is subject to the tax, meaning that millionaires pay a substantially smaller percentage of their income into the Social Security trust fund.

Studies have shown that eliminating the cap would raise enough money to cover any deficits caused by our aging population. This was done about a decade ago with Medicare.

Of course, the rich will cry foul, but truly the tax is unfair to lower wage earners. But it would cost nothing really to implement, unlike the $2 trillion estimate with Bush's privatization plan, and it carries none of the risk of Bush's plan. But the fact that rich folks would have to pay their fair share is the reason you won't hear this idea discussed much in the media -- they won't have it.


Blogger Kate said...

Why should "the rich" pay for the retirement of "the poor?"
Why is that fair?
This is the very question that eventually turned me from a professed liberal into a conservative.

4:23 PM


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