Sunday, February 06, 2005

End the cap for Social Security taxes to fully fund our pensions

I had blogged about this earlier -- the big driver of the Social Security funding gap is the cap on income subject to the payroll tax. Currently, only the first $90,000 earned is taxed. All the income earned above that is tax-free. Yippee! That's great if you're high-income! But, not so great for everybody else.

Nathan Newman runs a great blog which is on the blogrool and here he cites a poll here by Quinnipiac University where 69% of respondents agree we should eliminate the cap on taxable income.

I hope Rahm Emanuel and other Dem leaders who run in wealthy circles to raise funds will articulate this position, so the opposition party can get bolder and more defined.

2 comments:

FightforJustice said...

It was a Republican Congressman, as I recall, who said this should be on the table.

Anonymous said...

So are you also going to raise the cap on benefits, or are you saying the more you earn, the more you pay, but what you get back is capped. Raisinig the cap on income fixes the problem only if you don't then pay out more when workers retire, but that raises serious fairness questions and risks losing support for the system from wealthier workers. Think it through, mr twenty-something.