| Shadow1980 said: Social Security not only shouldn't be privatized, it doesn't need to be privatized. The problem of solvency can be fixed by eliminating the payroll tax cap and making it to where all income taxed at the same rate. For the year 2015 no annual income above $118,500 is subject to the payroll tax that funds SS. That means that while somebody making $120,000 pays more into SS than someone making $12,000, somebody making $1,200,000 doesn't pay any more than the person making $120,000. While everybody at or below the cap pays the 6.2%, someone making ten times the cap pays only 0.62%. This means it's a regressive tax, as the higher you income is above the cap the less tax you pay as a percentage of your income. Everybody should pay the same 6.2% regardless of whether they make ten thousand or ten million. In fact, maybe we should consider adding an additional 1-2% to the payroll tax on all incomes above $200,000/year. P.S.: If someone wants to rebut me, please don't bother if you're going to cite Cato, Heritage, or other libertarian or conservative think tanks that believe in "Privatize all the things!" as a matter of principle. I don't consider those trustworthy sources. |
One question: who is going to support a blatant redistribution of money other than socialist? We are talking about realistic solutions that actually have a chance of happening and that don't have other negative consequences.
