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"... That wage shift toward the already well-paid puts more of the nation’s paycheck out of reach of the payroll tax, which isn’t collected on salary and wages above the legal ceiling, which this year is $106,800. (In effect, the payroll tax operates as a surtax on the income of the working and middle classes, with much of the income of upper earners exempt.)Because of that shift toward high earners, an additional $1 trillion in annual salary is now out of reach of the payroll tax, meaning the Social Security Trust Fund is projected to use up its surplus by 2037, four years earlier than expected."
I never knew that there was such a cap. But if I ever had any doubts that the USA is a plutocracy, they're gone now.
This is why the cap on income that pays the Social Security tax and Medicare tax should be eliminated completely.
Hogwash. You can't convince me that I should pay into a system that I will never, repeat never, use. I'll donate to charity on my own accord, not forced.
Or, option three, those in the managerial and executive class control the compensation process and have tilted it in their own favor, skewing it to reward themselves and their peers at the expense of others. That doesn’t necessarily make them evil or even particularly greedy; given human nature, any group of people, granted such power without a countervailing power to offset it, would do the same thing over time and have no conscious sense of doing so. And in 21st century America, the forces that once discouraged such behavior — social and cultural norms, taxation policies, corporate bylaws, etc. — have weakened to the point of being ineffective.
SS was never intended as a retirment program. It was supposed to be insurance and very bare bones insurance at that. The way to fix SS is to reduce the payroll tax to 3%, remove the cap and increase the retirement age to 80. Problem solved. By the way 65 was only chosen because so little of the population ever attained that age.
"... That wage shift toward the already well-paid puts more of the nation’s paycheck out of reach of the payroll tax, which isn’t collected on salary and wages above the legal ceiling, which this year is $106,800. (In effect, the payroll tax operates as a surtax on the income of the working and middle classes, with much of the income of upper earners exempt.)Because of that shift toward high earners, an additional $1 trillion in annual salary is now out of reach of the payroll tax, meaning the Social Security Trust Fund is projected to use up its surplus by 2037, four years earlier than expected."
I never knew that there was such a cap. But if I ever had any doubts that the USA is a plutocracy, they're gone now.
Someone making 106k is neither rich nor 'not working' for his money.
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