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View Diary: Why Now is the Time to End the Social Security Tax Loophole (87 comments)

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  •  I'm perfectly fine with people getting a benefit (1+ / 0-)
    Recommended by:
    rasfrome

    based on what they've paid into the program.  Removing the cap on earnings subject to FICA should be the first step in dealing with Social Security.  It should be done before any cut to benefits in any form is considered.

    •  Thats a 14k monthly SS check, $168,000 a year (1+ / 0-)
      Recommended by:
      Clem Yeobright

      ...... Social Security blogathon March 25th thru March 29th. #HandsOffmySS FDR 9-23-33, "If we cannot do this one way, we will do it another way. But do it we will.

      by Roger Fox on Tue Mar 26, 2013 at 03:47:04 PM PDT

      [ Parent ]

      •  I know that's a lot of money, but it's based on (1+ / 0-)
        Recommended by:
        Clem Yeobright

        actual contributions.  If the ultimate result is that the program survives with no cut in benefits that's okay with me.  If contributions are essentially unlimited, as they would be if the cap was removed and benefits are based on the level of contributions, then it makes sense that some people would receive some large benefits.

        If the program is means tested, it will become a welfare program, not an insurance program.  That is the first step to elimination, just like was done with Welfare in the 1990s.

        If the chained CPI is used, the benefits will be significantly reduced and that will severely impact people who are the most vulnerable, especially as time goes on.  Similarly raising the eligibility age or requirements will impact those who have worked in the most physically demanding occupations.

        That's why I think that removing the cap is the fairest option.

        •  But SS might be good thru 2090 (1+ / 0-)
          Recommended by:
          Clem Yeobright

           photo SStrustees2090-1.png

          SS might be good with wage growth and job creation, thru 2090 as per the Trustees low cost scenario. Its only 2.8% GDP growth.

          Lets say you can only have one thing:

          20 million jobs and raise min wage, SS is good thru 2090

          Remove cap SS is good thru 2090.

          ...... Social Security blogathon March 25th thru March 29th. #HandsOffmySS FDR 9-23-33, "If we cannot do this one way, we will do it another way. But do it we will.

          by Roger Fox on Tue Mar 26, 2013 at 07:58:45 PM PDT

          [ Parent ]

          •  Roger, I would also prefer the raise the minimum (1+ / 0-)
            Recommended by:
            Roger Fox

            wage/create jobs option, I just don't see it happening in this Congress.  I must admit that removing the cap is also somewhat unlikely at this point.  Especially since neither thing is being even considered or discussed.

            It seems that the debate has all been centered around how to cut things in the most acceptable way.  As a person who receives SSDI and Medicare as my primary source of income/medical care, no reduction is acceptable.  Current levels of benefits are barely enough to live on.  The COLA increase this year wasn't even enough to cover increases in the copays for my medications and utilities, not to mention food prices.

            I worked and contributed to the program for more than twenty years, before applying for benefits and I don't consider them entitlements, but a social insurance program that is there for those in need.  If it is somehow converted to a voucher or "welfare" program, I fear that it will inevitably cut and the must vulnerable will suffer.

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