Skip to main content

View Diary: Can you work against the social safety net and still call yourself a Democrat? (173 comments)

Comment Preferences

  •  wrong. thanks for playing. (12+ / 0-)

    the reason that there is a shortfall projected all those years out is this. income inequality. the way that the formula for fica taxes is set up it needs for a certain amount of income (90%) to be exposed to the tax.

    since enormous income inequality has been occurring, largely because about 93% (if i recall correctly) of the economic gains of productivity growth have gone to the top 1% of income earners over the past decade roughly, the amount of income (due to the cap on fica) that is exposed to the tax has diminished.

    there are a couple of ways to fix this.  the easiest is to raise the cap on fica until 90% of income is exposed to the tax again, or, the harder but fairer method - income redistributive measures that reverse income inequality.

    thanks for playing.

    i'm part of the 99% - america's largest minority

    by joe shikspack on Tue Jan 08, 2013 at 08:42:16 AM PST

    [ Parent ]

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site