Why don't they just tax all income for social security?

[Herman Munster]

If they tax everyone's imcome like the way medicare is now, and then means-test the benefits so the millionaires won't get crazy social security checks, the system won't go broke.

Seems like common sense to me.

[silverweb]

1. Exactly.

It's common sense. And the rich will fight it to the death.

:shrug:

[rocktivity]

2. So commonsense that a DU-er won a contest with it.

and we'd all get to pay a lower rate, too.

http://www.bushin30years.org/view/winner.html?flash_id=87

:headbang:
rocknation

[FogerRox]

3. NAh .. thats too fair

[ProgressiveEconomist]

4. Another issue is taxes on the trillions rich Boomers are about to withdraw

withdraw from tax-qualified plans. Trillions of pre-tax dollars have been deposited into IRAs, Keoghs, SEPs, etc. Under current law, those trilliions automatically would generate a couple of trillion dollars in future tax revenues that could be applied aginst negative FICA cash flow as Boomers retire.

But right now Republicans are scheming to expropriate that moneystream too for warfare, school vouchers payeoffs to the far right, and even more tax breaks for younger and older wealthy people. If Congress doesn't change hands this year, that last resort for relatively painlessly paying back the Reagan payroll tax theft from working people will be pissed away.

[TahitiNut]

5. The numbers aren't there.

Far, far better would be to increase the equity in employment compensation. Starting with raising the minimum wage and penalizing the off-shoring of jobs, it's the economic "war against the middle class" and the bottom 90% of all workers that's far more destructive of social security.

Consider merely one thing. Raising the wages of 100 million workers by $1 would increase payroll tax revenues by $15 million. On the other end of the scale, how much would the ceiling need to raised on 1 million workers to equal the same $15 million?

What you propose would further institutionalize inequitable compensation ... and doesn't even begin to address the far more egregious inequity in 'investment' income: the income gotten from the labors of others.

While the following chart incorporates some inaccuracies, it's an apt depiction (Lorenz Curve) of payroll income distribution in this country. To imagine the comparable amounts to be gained from payroll taxes, merely envision the small space under the curve to the upper right in comparison to the area covered by raising the 'belly' of the curve overall. That's the proportional opportunity.