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The real problem with eliminating the cap on the Social Security tax

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dsc Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 08:41 AM
Original message
The real problem with eliminating the cap on the Social Security tax
Social Security has been overfunded, not underfunded. It lets the real culprits escape. To the extent that Social Security is in trouble, and that is highly debateable, it is in trouble because the excess funds from Social Security was used to offset lowering taxes upon the super rich and corporations. Warren Buffet was brought up at the debate and the obscene fact he pays less in taxes than he secretary. But eliminating the cap on Social Security won't increase Buffet's taxes. Social Security only applies to wages not income from investments. The real solution is to raise the tax on corporations, raise the taxes on capital gains, and raise the taxes on investment income. Use those funds to balance the budget and if needed, shore up Social Security. Leave the cap alone.
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RC Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 09:15 AM
Response to Original message
1. You are going to have trouble with the Capital Gains Tax.
There needs to be a minimum amount, below which no taxes are due. I make less than $50 grand. Why should I be subjuct to it?
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Warren Stupidity Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 11:16 AM
Response to Reply #1
11. Just treat all income equally.
If you make 50K from your wages or selling stocks, treat it as 50K of income and tax accordingly.
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papau Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 09:22 AM
Response to Original message
2. I like no cap on SS wages - with extra money used to decrease tax rate on Employee's side by 1.5% n/
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fadedrose Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 09:42 AM
Response to Reply #2
5. Cap
I think HRC said the other night that she didn't believe in raising the cap (I guess that covers eliminating as well) because she considered that would be a tax increase.
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papau Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 04:49 PM
Response to Reply #5
14. Her position against removal of the cap is one of the reasons I'm not (yet) supporting her.
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RC Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 05:18 PM
Response to Reply #5
15. That sounds like a repug talking point.
This country needs a big time tax increase to pay for bu$h's war of choice. Restore the taxes on the +$200,000 and above income. Confiscate the obscene profits of the oil companies and use that for government funded research for alternative energy sources. Jail the criminals and their supporters instead of giving them multi-millions $$$ in bonuses for ripping off their employees, stockholders and the public.

This country is awash in money and drowning in debt.
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MaineDem Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 09:37 AM
Response to Original message
3. I would like to see the cap raised
Before i retired I would bump up against that cap in December. My last one or two paychecks would be higher because the deduction wasn't made. Wouldn't have mattered to me if those extra weeks had been deducted.

But now I'm a retiree who hasn't seen an increase in my pension in over 12 years. Good thing there's no inflation. :eyes:
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creeksneakers2 Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 09:37 AM
Response to Original message
4. Coming up with a proposed solution
validates the GOP myth that there is a problem with SS. We have a debt problem, not an SS problem. The only way to alleviate the debt problem is to balance the budget and pay some of the debt down.
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MaineDem Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 09:43 AM
Response to Reply #4
6. Now that's a very good point!
And one so easy to forget because it's not often mentioned.
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dsc Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 09:54 AM
Response to Reply #4
8. the fact the GOP stole the money is a problem
and they should be made to put it back but it should be put back from the correct place.
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Warren Stupidity Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 12:18 PM
Response to Reply #8
12. exactly. Tax the crap out of them until they've put back every cent they've robbed.
But we'd actually have to have a populist rather than a kleptocratic congress to do this.
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Captain Hilts Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 09:45 AM
Response to Original message
7. They should eliminate the FICA tax on the first $20K you earn. Then increase the top level $20K. nt
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dsc Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 10:02 AM
Response to Reply #7
10. absolutely not
the reason the SS system is so popular is that it isn't seen as income redistribution. keep the EOC for those who need the SS taxes refunded but don't change SS into income redistribution.
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Captain Hilts Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 12:36 PM
Response to Reply #10
13. Absolutely yes. The EITC is so complicated, the govt. has a hard time with it...
until they can make that work, shift the FICA tax up $20K. Same pair of pants, different pocket, but same pair of pants.

Over 80% of American taxpayers pay more in payroll taxes than income taxes. This is why. Payroll taxes are regressive.
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spooky3 Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 09:56 AM
Response to Original message
9. exactly right
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rocktivity Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 05:23 PM
Response to Original message
16. That's easy to solve--raise/eliminate the cap and LOWER everyone's rate.
Edited on Sat Nov-17-07 05:24 PM by rocknation
There's no reason to take in more money than is needed. Indeed, the rate could be adjusted periodically as needed.

:headbang:
rocknation
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rucky Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 05:25 PM
Response to Original message
17. The cap is incredibly regressive.
Look at every tax and decide what's fair. If we end up with a surplus, we may be able to start paying off our national debt.
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ellisonz Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 05:36 PM
Response to Reply #17
18. Yup.
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