Most people, I suspect, don’t realize that rich Americans don’t pay payroll taxes on their entire incomes, like the rest of us. They don’t. If Senator Bernie Sanders gets his way, though, all of that may stop. Word is that he’s submitting legislation that would remove the payroll tax cap, thereby insuring the future of Social Security, without cuts, for the next 75 years. The following clip comes from Think Progress.
…To keep Social Security strong for another 75 years, Sanders’ legislation would apply the same payroll tax already paid by more than nine out of 10 Americans to those with incomes over $250,000 a year… Under Sanders’ legislation, Social Security benefits would be untouched. The system would be fully funded by making the wealthiest Americans pay the same payroll tax already assessed on those with incomes up to $106,800 a year…
Here’s a link to Bernie’s press release. And, assuming you agree, you can contact your Senators and ask them to support Sanders, by clicking here.
8 Comments
Sadly, I can’t imagine Stabenow or Levin signing on.
Kucinich is also doing good work.
More:
https://www.commondreams.org/newswire/2011/08/24-9
Video of Kucinich absolutely kicking ASS against a hired Republican think tanker on health care stats comparing the US and Canada.
http://front.moveon.org/dennis-kucinich-slams-right-wing-health-care-expert/?rc=fb.fan
I saw this today: $23,000 for circumcision.
Back on topic, I’ve seen a lot of Bernie Sanders lately in the media. But how much influence does he have in the Democratic Party?
That’s an outrage. No one should have to pay that much to mutilate their cock.
I wonder how this would work. Your social security check is indexed to your earnings. So if people pay more, they’ll end up collecting more and unless there’s some sort of cap on payments, we’ll end up right back where we started. More in, but more out.
As I understand it, and I could be wrong about this, you don’t get back every dollar you put into Social Security. It’s not, in other words, like a 401 K. Some people get back more than they put in, and some get back less. Regardless, though, I believe we’re headed for some kind of means-testing, where everyone pays in, but only the truly needy are able to receive funds. I don’t necessarily like that idea, but I think that’s where we’re headed.
While I support the idea of lifting the earnings cap on Social Security taxes — the proposal for “means testing” Social Security *benefits* is a terrible idea, and the beginning of a very slippery slope.
Unlike many other government programs, one of the main reasons Social Security has (traditionally) been so popular is because nearly all workers eventually benefit from it — regardless of how low (or high) their income when they become eligible to retire. And, even many relatively comfortable, middle-class folks appreciate knowing that “mom” or “dad” will have a little extra coming in each month to help them pay their electric bill, or to help with nursing home costs.
However, if we turn SS into a program where everyone pays in, but only the poor (or middle-class) receive benefits, it will soon become seen as another “welfare” program — especially by many wealthy people who already resent paying taxes — which will lead to further weakening popular (and political) support for this cornerstone of the New Deal social safety net.