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View Diary: "Everything you just said is wrong" (136 comments)

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  •  I'm ok with raising benefits proportionate (0+ / 0-)

    to raising the cap so long as the formula isn't linear, and caps at a certain point. Which is how it currently works, btw. And the cap need not be lifted completely. All cap-raising proposals I've seen raise it only enough to cover the projected shortfall, not more. Thus not every dollar above the current cap gets taxed, or even taxed at the same rate as every dollar below it.

    And raising rates is a non-starter. Deducting another 2% from everyone's paycheck is simply not going to happen. Nor does it need to happen. Unlike what's been suggested above SS has never been a 100% get out what you pay in program. There's always been redistribution in it, by design, with the top earners getting less and the bottom earners more, proportionately, to what they paid in. I.e. it's not linear, never has been, never should be, as opposed to, say, an annuity. And with the right cap lifting and payout formulas, rates don't need to be raised to make up the shortfall. Sure, rich people will get slightly "shafted", but I'm ok with that. They can comfort themselves with their yachts.

    "Liberty without virtue would be no blessing to us" - Benjamin Rush, 1777

    by kovie on Sun Apr 29, 2012 at 04:50:47 PM PDT

    [ Parent ]

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