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How the (Super Rich) Are Killing Social Security | Robert Reich.

 
 
Reply Wed 15 Nov, 2023 12:32 pm
How the (Super Rich) Are Killing Social Security | Robert Reich


1. Social Security taxes are rigged for the rich — and the program is in danger because of it.

2. A CEO earning $20M/yr pays Social Security taxes on ~1% of their income.

3. Meanwhile, a normal worker pays Social Security taxes on 100% of their income.

4. How does that make any sense?


Published Jun 27, 2023


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Type: Discussion • Score: 3 • Views: 483 • Replies: 3
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bobsal u1553115
 
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Reply Wed 15 Nov, 2023 10:28 pm
@Real Music,
I really angered my dad when I found out he was taking SS. He is wealthy. I told him that I felt SS should be means tested and he would not qualify. SS was never meant to help subsidize a lifestyle that included 200 or so days on cruises. It was meant to keep old folks out of SROs and eating dog food.

They cruised like that from the time they retired at 50 till their eighties.

With in a year or two, they definitely got out of SS every penny they put into SS since they started working. My dad is ninety. And still flush. Still taking SS. He's taken $480,000 since he's been seventy, 24,000 a year for twenty years.
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Real Music
 
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Reply Wed 15 Nov, 2023 11:54 pm
The 5:18 mark thru 6:46 mark of this Elizabeth Warren video
is saying precisely what Robert Reich also said
in his video at the beginning of this thread

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Real Music
 
  1  
Reply Thu 16 Nov, 2023 12:25 am
One way to fix Social Security?
"Smash the cap"


Published March 3, 2023


Quote:
Social Security is heading for a funding cliff, with its trust fund reserves potentially becoming insolvent by 2033 — an outcome that would mean beneficiaries would face a 25% shave on their monthly checks. But there is a way to fix most of the funding shortfall, policy experts say: "Smash the cap."

That refers to the Social Security tax cap, a feature of the program since it was launched in the 1930s following the Great Depression. Essentially, any income over the earnings cap isn't subject to the Social Security payroll tax, which is 6.2% for workers and an additional 6.2% for employers.

In 2023, the tax cap stands at $160,200, which means any income above that amount is exempt from the payroll tax. As a result, middle- and lower-income workers bear a much greater tax burden in funding Social Security than the 6% of Americans who earn above the threshold, according a new analysis from the left-leaning Center for Economic and Policy Research.

"If you make over that cap, like 6% of the population does, you could be paying 1% of your income or even less than that," noted Sarah Rawlins, program associate at CEPR.

Yet a middle-income worker earning less than the $160,200 cap in 2023 will pay an effective tax rate that is six times higher than the millionaire's tax burden, she noted.

That's why the Congressional Budget Office (CBO), a federal agency that provides financial analyses of policy issues, calls the Social Security tax cap "regressive" — middle- and low-income workers pay a much greater share of their income toward the program than the rich.

Eliminating or lifting the tax cap could help stabilize Social Security's trust fund by providing more revenue to the program, Rawlins said. A December analysis by the CBO found that eliminating the cap for earnings over $250,000 would keep the trust fund solvent through 2046.

Meanwhile, some lawmakers are proposing changes that include both getting rid of the tax cap and other changes to address Social Security's funding challenges.

Senator Bernie Sanders, an Independent from Vermont, and Senator Elizabeth Warren, a Democrat from Massachusetts, in February introduced legislation that would stabilize the trust fund for the next 75 years.

Among their plans: Lift the tax cap for people earning $250,000, and add the Social Security tax to investment and business income, which is currently exempt from the tax.


https://www.cbsnews.com/news/social-security-benefits-tax-cap-2023/
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