The current discussion about Social Security has not made the essential point – that current levels of Social Security can be achieved forever by eliminating the $106,000 cap on Social Security income. The current law is simply another tax cut for the rich – 90% of the people pay tax on 100% of their income, and the rich – well, they are just not that into taxes, and pay no additional tax on income over the cap.
IF we don’t give tax cuts to the rich, we will give cuts to Granny – cuts in her Social Security. Make bricklayers work until they are 70. Cut benefits to the most vulnerable – after they’ve paid into it all their life.
It really comes down to this – preserve another unequal tax break for the rich, or soak the old and the tax payers.
Why does the cap exist? Is it fair that the richest of us all should not have to pay the same taxes that the poor and middle class do? I’m not talking about soaking the rich – I just want them to pay their fair share!
Social Security funds have been abused for many years. Until the current economic debacle, Social Security has run a profit. The profit was intended to be used when payments exceeded revenues – when the Baby Boomers hit. This profit was spent immediately by buying special Treasury bonds – allowing lower tax rates during the surplus years. What happens when the surplus is needed by Social Security? The money has to come from somewhere – more debt, higher taxes, or lower spending. This is the real reason that Social Security is in trouble.
After retirement, people are at their most vulnerable – it is unlikely that they can generate additional money. Many retirees live on nothing but Social Security. Work is usually out of the question. This is critical because most Americans badly underestimate the cost of retirement and have savings of under $50,000 as they approach retirement.One disaster can wipe them out.
We must retain the current levels of Social Security. Social Security is an essential component of retirement for just about every retiree, and the sole income of too many older Americans. The issue here is the quality of life for the elderly. How many Grannys will go hungry, or without their meds, or simply die because they cannot afford to live?
The choice is yours, Washington – tax equality and no problems for Social Security, or continued tax cuts for the rich and big problems for every retired American or higher taxes.