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Fresh_Start

(11,330 posts) Fri Dec 21, 2012, 10:39 AM Dec 2012

SS should be a progressive tax rate.

currently it is a regressive tax due to the cap.
But higher income is associated with longer longevity...since higher incomes will collect longer, they should contribute more.

4 replies

= new reply since forum marked as read

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SS should be a progressive tax rate. (Original Post) Fresh_Start Dec 2012 OP

Yes, remove the cap. byeya Dec 2012 #1

but also increase the rate of personal contribution on higher incomes..... Fresh_Start Dec 2012 #2

The IRR shows higher incomes return less than the lower incomes. dkf Dec 2012 #3

It is regressive on the front end and progressive on the back end. DURHAM D Dec 2012 #4

byeya

(2,842 posts)

1. Yes, remove the cap.

Reply to Fresh_Start (Original post)

Fri Dec 21, 2012, 10:41 AM

Dec 2012

Fresh_Start

(11,330 posts)

2. but also increase the rate of personal contribution on higher incomes.....

Reply to byeya (Reply #1)

Fri Dec 21, 2012, 10:43 AM

Dec 2012

income over 200K should pay a higher percentage than income of 50K

dkf

(37,305 posts)

3. The IRR shows higher incomes return less than the lower incomes.

Reply to Fresh_Start (Original post)

Fri Dec 21, 2012, 10:44 AM

Dec 2012

The progressivism is in the return, not in the contribution as lower contributions mean lower benefits.

http://www.ssa.gov/OACT/NOTES/ran5/an2004-5.html

DURHAM D

(32,609 posts)

4. It is regressive on the front end and progressive on the back end.

Reply to Fresh_Start (Original post)

Fri Dec 21, 2012, 11:09 AM

Dec 2012

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