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View Diary: Scarborough is complaining that "taxing the rich" won't "fix" Social Security (26 comments)

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  •  I think you may have confused payroll (2+ / 0-)
    Recommended by:
    jamess, JeffW

    tax with income tax. What Reich is arguing is that 90% of income earners pay payroll taxes, in other words lift the payroll tax ceiling from $106,000 to a high figure that would mean more wealthy people pay more in payroll taxes. The other issue is that the government borrowed money from the Social Security system and now some conservatives are trying to figure out how to default on these loans. To repay these loans will require an income tax increase. This money is a part of the national debt that was spent from the 80s until today. We spent this money in order to provide tax cuts and now the bill has come due. So there are two issues here funding of the program into the future to cover boomers and paying back the fund the money borrowed from the fund to fight wars and give tax breaks to the wealthy.

    Bowles-Simpson recommend cutting benefits and raising the retirement age. This is a way of defaulting on the debt the government owes the Social Security system. Remember Al Gore and the lock box and how the media laughed. Well Al was right and it has come back to bit us in the ass. Any talk of lowering benefits or raising the retirement age is an attempt to partial default on the money owed to Social Security by the government. And that is why the Grand Bargin stinks. It abandons the Democratic Party's protection of the safety net and promises made to workers in the name of lower taxes and defaulting on a sacred obligation.

    •  Yep, that's why Rethuglicans have been (1+ / 0-)
      Recommended by:
      JeffW
      The other issue is that the government borrowed money from the Social Security system and now some conservatives are trying to figure out how to default on these loans. To repay these loans will require an income tax increase. This money is a part of the national debt that was spent from the 80s until today. We spent this money in order to provide tax cuts and now the bill has come due.
      Bowles-Simpson recommend cutting benefits and raising the retirement age. This is a way of defaulting on the debt the government owes the Social Security system.
      yapping about the "Social Security crisis".  This point needs to be made frequently, thank you for making it now.  

      Renewable energy brings national global security.     

      by Calamity Jean on Mon Oct 01, 2012 at 09:11:34 PM PDT

      [ Parent ]

    •  i do, and the media was right. (0+ / 0-)
      Remember Al Gore and the lock box and how the media laughed.
      the only way the gore lockbox works is to literally leave billions in cash sitting there, doing nothing. not earning interest results in a loss of value over time, due to inflation. so the $100 dollars that went into the lockbox last year is now worth $98 in constant dollars. by law, those excess receipts must be invested in special, interest bearing, gov't bonds, with the funds then going into the treasury's general fund. absent literally leaving piles of actual cash sitting in a vault, gathering dust, those excess funds will get into the hands of congress.

      unless you have a way around this, mr. gore's idea made no actual sense in practice.

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