Neil Irwin is an NYT writer worth reading. He earlier stated the obvious, that a steep wealth tax would result in their being less wealth to tax: How Is a Wealth Tax Like a Cigarette Tax? It tries to make things disappear.
The Dems plan to take all the money and hand allowances to Loyal Democrats
That’s socialism, no surprise here.
Next time they get the chance that cap WILL be eliminated.
Only way to prop-up a failing Social Security system.
And it will be popular with the vast majority who don’t earn high incomes and don’t understand why every penny should be taxed like theirs is.
This is not a tax, it is plain and simple income redistribution. Taxes fund defense, infrastructure, and other things that all benefit from, at least in theory. This does not.
“The traditional argument has always been that Social Security is very popular because it’s not seen like a traditional welfare program,”
SS may not be “seen” as welfare but it is. It is already a wealth transfer program and this proposal just pulls the curtain back. It transfers wealth from current workers to current retirees. Now it will also explicitly transfer wealth from “rich” to “poor”.
It was a long time ago, but I seem to remember Jimma’ Carter
got himself elected by promising to ‘get the rich’.
When pushed to define what ‘rich’ meant, he, off the cuff, stated something like 13K a year income. After, his handlers got control, he had boosted that to 19K. (mid-seventies dollars, remember) The press was happy to spin things nicely for him. When he got in, everybody paid more.
Say what they need to say to get elected. After that, all bets are off.
How long before they start taxing keywords?
“The traditional argument has always been that Social Security is very popular because it’s not seen like a traditional welfare program,” said Kyle Pomerleau, a resident fellow at the conservative-leaning American Enterprise Institute. “What you pay in roughly corresponds to what you get.”
And this -- the old man notes for the benefit of the young'uns here -- is why liberals traditionally opposed general revenue financing of Social Security.
Eliminate the earnings cap and the Social Security tax becomes merely an income tax surcharge, half of it concealed by being withheld separately by employers before it ever shows up in a pay stub. The Social Security tax would become the lowest tax bracket in a highly progressive tax code. Social Security would be stripped of its camouflage and exposed as the welfare system that it really is.
The Social Security benefit formula is already heavily means tested via the bend points; lower income beneficiaries receive a much higher implicit ROI, and benefits get poorer as you move up the income ladder. Defenders of the current system very much don't want you to know this. Eliminating the earning cap on taxes without increasing high end benefits puts explicit and open means testing on the table. As the system continues to slide towards bankruptcy, ever more aggressive means testing would be the inevitable next step.
The end game will be a Social Security System that only pays benefits to low-income retirees; the middle and upper middle classes will be progressively squeezed out. The fact that the democrats don't think this matters is mainly a reflection of the fact that they've gone full socialist and the very idea of an earned benefit no longer resonates with them.
Congress to exempt themselves from this thievery.
...and I’ll get a lot more out of the system than I would have otherwise when I retire right?
Yeah, I think not. Endlessly taking SS tax $$$$$$$ just becomes pure theft if you’re just giving to others and, when it’s my turn, I get a disproportionately less amount than to what I put in.
It’s why I thought there was a cap.
Ha-Before it’s over they will be calling me ‘rich’. I’ll have to show them the condition of my yard and my 12 year old Mazda
Good luck combating a social security tax on incomes above $137,000. While I understand the moral arguments against such a move, the simple math is that those making over $137,000 per year are significantly fewer votes than those making less than $137,000 annually.
Americans used to riot over small hikes in taxes on tea.
You can also thank Bill Clinton for moving all those people off of welfare straight over to SSI. Half of South Georgia is on SSI and has never worked a day in their sorry lives. They are taught how to get their kids on SSI from day one. I paid into Social Security and will probably never see a dime, but some people will never pay in and will get more monthly than my husband will ever get.
“HIP”s in most states tended to vote for Shillery and rat for Congress in 2018.
I hope they wise up before they become medium income after getting their pockets picked.
‘Could try a “Luxury Tax”...
No,wait...that didn’t work out so well...