It was former President Bill Clinton who multiform years ago set out the singular options for Social Security reform: cut benefits, deposit privately, or lift taxes. During the final Democratic claimant debate, his mother refused to put any of those options upon the “proverbial table.” The alternative Democratic contenders weren’t as hesitant. Five candidates, together with John Edwards as well as Barack Obama, upheld light the top upon payroll taxes to financial the system.
Currently, usually the initial $97,500 of annual income is theme to the payroll tax. Edwards in sold was austere about fatiguing earners who have over $200,000 the year. But whilst shower the abounding might be the politically renouned approach, the being is which this huge taxation travel would severely repairs the U.S. manage to buy whilst you do really tiny to save Social Security.
Eliminating the top upon payroll taxes would be, by far, the greatest taxation travel in U.S. history: some-more than $1.3 trillion in brand new taxes over the initial 10 years alone. As bad as which would be in the aggregate, it would be even worse for particular workers. A workman earning $103,000 per year would compensate $1,240 some-more in taxes any year.
Moreover, raising the taxation top would not only stroke the super rich, as is mostly argued, though would tumble many heavily upon the top center class. Some 9.2 million Americans would see their taxes increased. Roughly 3 buliding have been managers or alternative professionals such as doctors, lawyers, as well as engineers. sixteen percent work in sales or bureau occupations, whilst the residue includes teachers, nurses, lorry drivers, farmers, as well as troops officers. Small businesses would be quite hammered: about one-third of the workers influenced by raising the top would be tiny commercial operation owners.
But Rouss., large cuts in troops spending ok, though which is not the indicate here. The indicate is which Obama is in preference of this.
The subject itself is not the diatribe Bradley. The calm is the created inform NOT A QUESTION BIRDBRAIN. But it’s the critical issue.
{ 3 comments… read them below or add one }
I’ve never heard of a teacher making more than $97,500 a year. Most farmers are perpetually in debt. And few police officers make that much. I’m sure some doctors do though.
But if you insist upon not raising taxes, then I propose making up the money through massive cuts in military spending. $500 billion a year is more than we need for defense, I think $100 billion a year is plenty. There we go, problem solved. No tax hikes.
Edit: why wouldn’t he be? It’s as you said, a politically popular position to take. Democratic views on the economy and Republican views on the economy differ to some extent. Democrats don’t feel that taxes have to be as low as Republicans claim in order to have a healthy economy. I’m saying that if you don’t want to raise taxes, but still want to save social security, then cuts have to be made. I think the military budget would be the most logical place, but it would be politically unpopular to cut it, just as it would be politically unpopular to do nothing about social security. They have to do something, something that people will support and we know they don’t want it privatized, they’ll only except small spending cuts, they don’t want a decrease in benefits, so they go with their last viable option: raise taxes.
Edit again, to below: The average teacher makes $47,602/yr. according to the American federation of teachers or just over $52,000 according to the BLS. The average police officer makes $48,410 according to the BLS. The average corrections officer makes under $40,000 a year according to the BLS. Gee, I’ll take my hard evidence over your anecdotal evidence anyday.
Remove the cap, take care of the social security problem? Not likely until they put the funds in a trust solely for Social Security. All collections now go into the general fund and get spent
Raise taxes on the rich (who generate job growth) and you quell job growth, income, and taxes decline. Spiralling out of control. Dem’s don’t get it. Their answer is always to “tax the rich”, give to the poor, the poor will then vote for me and I will retain my lofty perky position.
God, the questions a rant and you can’t help but make the answer one also!!!
I don’t know where you got your formula but the difference between $97.5K and $103K is not $1240. SS tax is 7.5%. The diff in the two is $412.50. That being said, I have no doubt that the dems will tax us to death. They always have.