Re: Eliminating the Cap on Social Security Taxes Would Solve the Problem

mg wrote:

On May 13, 7:24 am, Alan Lichtenstein <a...@xxxxxxx> wrote:

Alvin E. Toda wrote:

On Thu, 10 May 2007, mg wrote:

There's an excellent report on the various options (as of 2005) for
solving the future SS deficit at:
http://www.nasi.org/usr_doc/SS_Brief_18.pdf

For example, eliminating the cap but not compensating retirees for the
extra earnings would provide enough revenue to remedy 116 percent of
the financial shortfall for the next 75 years. (Page 3, Option #1)

On the other hand, eliminating the cap and compensating for the extra
earnings would remedy 93% of the problem. (Page 4, Option #2)

Here are some other options:

Bring newly hired state and local employees into the SS system:
Remedy: 10% (Page 5, Option #4)

Change the retirement age to 68, etc: Remedy: 28% (Page 5, Option #5)

Change the retirement age to 70, etc: Remedy: 36% (Page 6, Option #6)

Increase SS taxes from 6.2% to 7.2%: Remedy: 104% (Page 7, Option #13

Earmark "limited estate tax" for Social Security: Remedy: 27% (Page 8,
Option #15)

Eliminate the 2001 and 2003 Tax cuts for top 1% and apply to SS:
Remedy: 100% (Page 9, Option #16

Allow SS to phase in 40% investment in equities: Remedy: 35% to 48%
(Page 9, Options #17 & #18)

http://www.nasi.org/usr_doc/SS_Brief_18.pdf

I like option #16

Alvin, why are you interested in punishing a group when there are other
alternatives available that would do neither?

Are you THAT jealous?

I insist the rich pay their fair share in taxes, but they should NOT be
soaked simply because they're rich. Do you think fairness is only for
the middle and lower classes?


Whether one is arguing with his brother-in-law, or arguing on a floor
of congress, or posting to these newsgroups, the real issue is always
the same: Progressive taxation versus Regressive taxation or
Proportional taxation. If everyone would simply state which one they
prefer, the argument would be much simpler.

I, for example, favor Progressive taxation, where the wealthy pay at a
higher rate, and I can't imagine anything that could change my mind.
Others prefer Regressive taxation (or proportional), where the wealthy
pay at a lower rate or the same rate, and there's nothing that's
likely to change their mind.

Taxes on the top 1%, for instance, are undoubtedly Proportional or
Regressive. For, regular income, for example, a person earning $100
million pays at approximately the same rate as a couple making about
$300,000. In addition, they pay at a lower rate than a lot of upper-
middle income wage earners since they only pay 15% on dividends and
capital gains.

I happen to agree with you, and in fact, have said so above. but Alvin is ignorant of the difference between the nature of the payroll tax( FICA ) and the tax which supports the tax levy( income tax ). It is that ignorance which causes him to make the assertions he does.

Unless of course he actually subscribes to the soak the rich mentality. And that, IMHO, would arise primarily out of jealousy. I don't consider myself wealthy, but I do understand the difference between the payroll tax and the income tax, and I do understand how Social Security works, thus questioning Alvin's assertion on the basis of fairness.
.

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