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View Diary: Why Now is the Time to End the Social Security Tax Loophole (87 comments)

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  •  Thank you for this (5+ / 0-)

    blowing away the income cap without increasing the credits receive fundamentally transforms Social Security.

    People really don't seem to understand the core idea behind Social Security.

    The bitter truth of deep inequality has been disguised by an era of cheap imported goods and the anyone-can-make-it celebrity myth - Polly Toynbee

    by fladem on Tue Mar 26, 2013 at 01:51:13 PM PDT

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    •  The core idea behind Social Security is that (3+ / 0-)
      Recommended by:
      SilentBrook, 3goldens, voicemail

      the elderly should be able to pay for necessary services and care instead of having to rely on the graciousness of relatives they might not like or have or depending on the charity of strangers.
      People whose avaricious genes have not been in over-drive during the productive adult years should not be penalized in old age or as a consequence of illness and disease.
      Dollars, whether made of paper or gold or electronic bits, are not edible. They are only good for trade and exchange.

      We organize governments to deliver services and prevent abuse.

      by hannah on Tue Mar 26, 2013 at 02:37:08 PM PDT

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      •  No, that's not the "core idea" behind (11+ / 0-)

        Social Security.  What you have defined -- that we have a program that allows the poor to pay for necessary services in their old age -- is "welfare" for the poor, or what FDR called "the dole" when he was adamant that SS should NOT be welfare.  

        Social Security is a wage insurance system.  It was specifically designed so that people would see it as a "you get what you pay for" system and not welfare, so that seniors could say, "I only want the benefits I paid for," so that seniors could say "I paid for my SS benefits," and so that the opposition could not kill it.  

        Turn it into welfare for the elderly and senior no longer have the moral authority to claim that they "earned" their benefits.  That's the quickest way to killing it.  As FDR recognized, our country does not like "welfare" or "the dole."  Our country DOES like people getting "what they paid for."  

        •  FDR changed the rules and (0+ / 0-)

          Clinton et al removed the rules. I don't think "the dole" matters much anymore. Just because people pay in doesn't mean they are going to be propped up by their personal investments because the storage mechanisms are not reliable any more.

          So what if it's welfare, if you starve the system, more problems squeeze out elsewhere, and other laws need to be passed to address the shortfall from some other program.

          It's the same way with these corporate tax cuts. Fewer people are employed and more are drawing UI insurance. Except the tax cuts got to stay and the loss of activity is covered by the rest of us in the 99%. It always squeezes out.

          There's no guarantee the system will work for any of us, SS should be for everyone that needs it, and not necessarily based on how they paid in. There's a shadow population out there that makes things work.

          •  GOP loves welfare, welfare Queens to be exact (1+ / 0-)
            Recommended by:
            Clem Yeobright

            and thats why the GOP is telling us SS will be broke in 2033.

            Well maybe, maybe not

             photo SStrustees2090-1.png

            SS might be good with wage growth and job creation, thru 2090 as per the Trustees low cost scenario.

             photo SSD2-1.png

            ...... Social Security blogathon March 25th thru March 29th. #HandsOffmySS FDR 9-23-33, "If we cannot do this one way, we will do it another way. But do it we will.

            by Roger Fox on Tue Mar 26, 2013 at 08:04:02 PM PDT

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    •  You can keep increasing the credits (0+ / 0-)

      By 1 cent on the dollar for contributions above 200k, 0.1 cent on the dollar above 2M, etc.

      I deal in facts. My friends are few but fast.

      by Farugia on Tue Mar 26, 2013 at 05:10:25 PM PDT

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