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View Diary: The case for eliminating the Social Security tax cap (43 comments)

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  •  Tim - one other possibility is the benefit formula (0+ / 0-)

    The SocSec formula has a significant progressive element, but I think if we raised the cap we could also tweak the formula to provide an even higher benefit to low income workers.

    High income workers are also penalized by the current formula. If you have ten years at the max contribution amount what you and your employer contribute beyond that only benefits you to the extent of the cap increase, which can be very modest, but your contribution continues at the maximum annual amount.

    We just have a fundamental difference of opinion regarding changing the founding principles of SocSec. I think if we tried to turn it into an income redistribution program we put the system at risk and could lose SocSec at we know it and not to the benefit of lower income workers.

    "let's talk about that"

    by VClib on Sun Dec 23, 2012 at 07:08:05 PM PST

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    •  I agree with ... (0+ / 0-)
      We just have a fundamental difference of opinion regarding changing the founding principles of SocSec.
      But before just agreeing to disagree, I'd like to get your reaction to the notion that the wealthy owes the retiree something for the residual value of the lifetime labors of that worker. Nobody who disagrees with me has done so yet.

      If there is some validity to that view, how do we get the wealthy to pay that moral debt?

      Note to Boehner and McConnell: "You don't need a weatherman to know which way the wind blows." --Bob Dylan-- (-7.25, -6.21)

      by Tim DeLaney on Mon Dec 24, 2012 at 01:36:10 AM PST

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