Why Can't The US Government Do This One Simple Thing...

[Jordan Gwendolyn]

Eliminate the salary cap on social security!!!

Currently, only the first $106,000 of income is subject to the SS/MediCARE tax. Why not remove this, and require a flat rate for all workers

This isn't as if I, a far-leftist, want to create a progressive payroll tax!!! However, even if a person that made $4 billion per year paid the same payroll tax rate as someone who made $40,000 per year, it would still not only solve social security's financial crisis, it would leave some left to reform the disability system.

And best of all, it would still be a flat tax rate, which is the darling of the far right, who will be assuming control of the lower house in January.

Obama has a chance to get bipartisan support to correct this wrong.

[Sewer]

why does your sig say *Link Removed*?

[memphis]

The right would never go for it. As much as they like flat taxes, they like regressive ones even better. And they certainly aren't going to raise taxes on richers without giving them additional benefits.

[cannonia]

I'm guessing the salary cap and the lack of a means test are both there for the same reason - to make Social Security a broad-based program to benefit the entire population rather than a wealth transfer program.  The salary cap is also the maximum earnings that can be used to calculate one's benefits.

[Magic 8-Ball]

Obama has a chance to get bipartisan support to correct this wrong.

Haha.  No.

[opebo]

I'm guessing the salary cap and the lack of a means test are both there for the same reason - to make Social Security a broad-based program to benefit the entire population rather than a wealth transfer program.  The salary cap is also the maximum earnings that can be used to calculate one's benefits.

That is of course the argument for this arrangement, but considering what a tiny minority of americans recieve more than $106,000/year, its pretty hilarious that the rest tolerate this.

[MASHED POTATOES. VOTE!]

Obama has a chance to get bipartisan support to correct this wrong.

Haha.  No.

Bi-what?

[Jordan Gwendolyn]

I'm guessing the salary cap and the lack of a means test are both there for the same reason - to make Social Security a broad-based program to benefit the entire population rather than a wealth transfer program.  The salary cap is also the maximum earnings that can be used to calculate one's benefits.

I said nothing about means testing.

And like I said, removing the salary cap is not wealth transfer, it simply is making the tax truly conservative, rather than plutocratic.

[cannonia]

I'm guessing the salary cap and the lack of a means test are both there for the same reason - to make Social Security a broad-based program to benefit the entire population rather than a wealth transfer program.  The salary cap is also the maximum earnings that can be used to calculate one's benefits.

I said nothing about means testing.

And like I said, removing the salary cap is not wealth transfer, it simply is making the tax truly conservative, rather than plutocratic.

I'm not sure your argument is substantive rather than merely rhetorical, but that's not true.

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If higher income earners pay increased taxes but do not receive a commensurate increase in benefit, then they are effectively subsidizing the program for the rest of the recipients.  Thus it becomes a wealth transfer.

[Jordan Gwendolyn]

Regardless of whether it is a wealth transfer, its still a necessary change that needs to be made to keep the program solvent for many years to come.

[Grumpier Than Uncle Joe]

Obama has a chance to get bipartisan support to correct this wrong.

Haha.  No.

Mark's right.  There is no way you can believe there is bipartisan support for this.........

[Southern Senator North Carolina Yankee]

The only thing that is bipartisan about that is the opposition.

Obama won't be touching SS before 2013 if reelected, it he isn't, then never.