Discussion: Analysis: Income Inequality Is Key To Fixing Social Security's Finances

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Discussion for article #233084

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Increase the maximum Social Security Taxable Earnings cap from the current $118,500 to $250,000.
Problem solved forever.

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Remove the salary cap in its entirety. Only reason it is there is for rich people.

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The top 0.1% should be taxed half their income, including cap gains and inheritance. Business regulations should be no weaker than the worst corporate excesses. It’s the only way to keep the top from taking over.

Dabbling around the edges might shore up SS (on paper) but it won’t stop fascist buffoonery.

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I have another proposed idea that should be looked at. Make the amount of social security benefits that is taxed move with the payroll tax cap. If a person has income above the payroll tax cap than their benefit should be taxed in full. If a person has less than the current payroll tax cap in income than their benefit should not be taxed. Use the amount paid in taxes on social security benefits to roll it back into the social security program. Currently, if you have above $35,000 in total income you get taxed on social security income above that level. It seems to me that I recall the amount paid into FICA was already taxed initially.

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“So, as income equality stratified and the wealthy accumulated more money above that cap, the share of Americans’ income being taxed for Social Security has decreased from 90 percent in 1983 to 83 percent in 2013. CAP estimated that, if the share had stayed at 90 percent, Social Security would have $1.1 trillion more in its coffers.”

Which suggests that the very first fix is to temporarily readjust the FICA limit to recapture that missing 7% until the income inequality itself can be worked out.

“all we hear about in Washington is how some on the other side of the aisle want to either privatize Social Security or cut benefits”

That’s because those are the only “solutions” the MSM wants to allow Amurikkkans to think exist. Let’s be real here: even those that pander to “liberals” like MSNBC are still huge corporations with hundreds or thousands of employees to whom they desperately do not want to give raises.

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