General Discussion
In reply to the discussion: Cutting SS/Medicare/Medicaid/Food Stamps in deal with Republicans. Yes or No? [View all]TexasBushwhacker
(20,165 posts)He says that Social Security used to tax 90% of the wages and that was fine. The problem now is that because a disproportionate amount of income has gone to the top 1% in the last ten years, only 83% is being taxed. So, rather than just raise the cap, someone suggested that they have an untaxed window from $110K to $250K, the SS kicks back in. That way it's being paid by the people who have benefited the most from the recovery. They could continue to raise the $110K lower limit based on inflation until the window is closed and all wages are taxed. This would keep Social Security more than solvent in perpetuity. They could raise the payments or they could lower the basic tax rate below 6.25.
Another way to raise some revenue is to make a small, less than 1% transaction tax on all stock market transactions. Wall Street can certainly afford it. They have it in other countries.