Sanders: Strengthen Social Security by taxing large incomes

[Playinghardball]

Source: Raw Story
By Stephen C. Webster

A forthcoming bill to be proposed by Sen. Bernie Sanders (I-VT), the only Democratic Socialist in the U.S. Senate, would make incomes above $250,000-a-year subject to the payroll tax, a move he says will make the nation's most beloved social safety net program, Social Security, significantly stronger.

The current payroll tax, which is Social Security's sole source of funding, only applies to incomes up to $106,800-a-year. Sanders' bill would not tax incomes between that amount and $250,000-a-year.

"Unfortunately, Republicans in Congress and too many Democrats, have been discussing harmful cuts to Social Security as part of an overall scheme to balance the budget on the backs of the elderly, the sick, the children, and working families," Sanders wrote in an essay published Thursday. "That is wrong, it is unconscionable, and it must not happen!"

He added that the program, which the Congressional Budget Office says is fiscally sound through 2038, has been dramatically successful in reducing the rates of senior citizens in poverty, but drastic cuts could change that.

More: http://www.rawstory.com/rs/2011/08/25/sanders-strengthen-social-security-by-taxing-large-incomes/

[udbcrzy2]

1. This makes sense n/t

[truedelphi]

2. One other method -

Taxing the stock market transactions at one quarter of a percent of a penny per transaction.

But taking on the Upper Middle Class is going to be a rough road to hoe in either event.

None of them think they have a penny to spare, and all of them think they are entitled to more than anyone else, due to their affluence and positions of Power, etc.

[Enthusiast]

6. Just do it.

I don't care who they tax, just get it done. Same with Medicare and medicaid.

[exboyfil]

3. The participation rate for calculating benefits

above the approx $105K is 15%. I would be in favor of taxing all income above $105K at a reduced withholding rate. Right now Social Security is structured so that folks making about $50K-$105K subsidize the system. In effect someone making $105K has satisfied his/her commitment to supporting lower income workers. I don't see why that should be the case.

On a side note I also think it is a very bad idea to increase the trust fund anymore. I would like to go to a pay as you go system right now reducing the rates for everyone by using the revenues of those over $105K contributing to the system. After the economy gets better the trust fund should be drawn down. As part of the legislation a commitment should be made that no more than 7.5%/7.5% (or some other number) is the maximum witholding for all time. If that does not generate enough income, then some sliding scale reduction should be applied to benefits.

[Life Long Dem]

4. Sanders in 2016!

[RegieRocker]

5. Lets see how many falsely dressed dems go for this.

[Life Long Dem]

7. I'd like to see how far Bernie gets with this myself.