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

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  •  That's not progressive. (0+ / 0-)

    Progressive doesn't mean "better for the poor". It means "f(x) rises faster than linear with x".

    Social Security has a flat benefit (up to the cap; incomes above that do not exist as far as SS is concerned).

    The benefit between benefit and inflation-adjusted best-working-years average contribution is regressive, that is, the benefit grows more slowly than linear as the contribution increases.

    It's still a better deal, dollar-for-dollar, for the lower end of the contribution scale than the top end, but let's be clear what "progressive", "flat", and "regressive" actually mean.

    Non enim propter gloriam, diuicias aut honores pugnamus set propter libertatem solummodo quam Nemo bonus nisi simul cum vita amittit. -Declaration of Arbroath

    by Robobagpiper on Tue Mar 26, 2013 at 04:44:58 PM PDT

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    •  Sorry, has a flat contribution, regressive benefit (0+ / 0-)

      Non enim propter gloriam, diuicias aut honores pugnamus set propter libertatem solummodo quam Nemo bonus nisi simul cum vita amittit. -Declaration of Arbroath

      by Robobagpiper on Tue Mar 26, 2013 at 06:19:48 PM PDT

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    •  Robobagpiper, progressivity math for taxes is (3+ / 0-)
      Recommended by:
      coffeetalk, Clem Yeobright, Roger Fox

      different than for benefits in economics.

      Here is a paper from NBER (National Bureau of Economic Research - BTW this is the trusted organization that officially decides when recessions start and end) The Prosgressivity of Social Security. in reading this paper you will see what I wrote is consistent with this paper.

      Progressive benefits are different than progressive taxes.  What you described as progressive was for taxes.  For progressive benefits "it means "f(x) rises slower  than linear with x".

      Social security does not have a flat benefit as you incorrectly state.

      You wrote

      The benefit between benefit and inflation-adjusted best-working-years average contribution is regressive, that is, the benefit grows more slowly than linear as the contribution increases
      You misidentify the above as regressive, when this is actually progressive when used to describe benefits.  

      To be progressive for taxes, higher incomes mean taxes increase faster than linear.  For benefits however, progressive means  benefits rise slower than incomes.  Progressive means higher incomes pay faster than linear with income and/or receive benefits more slowly than linear with income.

      The most important way to protect the environment is not to have more than one child.

      by nextstep on Tue Mar 26, 2013 at 06:45:02 PM PDT

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      •  Great explaination- thanks (2+ / 0-)
        Recommended by:
        nextstep, 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 08:06:14 PM PDT

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      •  I didn't state that SS has a flat benefit. It has (0+ / 0-)

        a regressive one. That I got from SS' own site.

        Non enim propter gloriam, diuicias aut honores pugnamus set propter libertatem solummodo quam Nemo bonus nisi simul cum vita amittit. -Declaration of Arbroath

        by Robobagpiper on Wed Mar 27, 2013 at 03:09:53 AM PDT

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