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Bobcat

(246 posts)
25. Benefits Received
Sat Oct 12, 2013, 05:16 PM
Oct 2013

What is being discussed in the original post is actually the benefits received principle. The benefits received principle states that the benefits one receives from government should be based on how much people pay in taxes. Those who pay more in taxes should get more in benefits from the government. Those who pay less to the government should get less back in benefits. The problem lies with the fact that it is impossible to measure the value of a government benefit. Who benefits more from the highway nearby - me or you? It is impossible to accurately measure the benefit each receives and thus levy the tax accordingly. That's why we administer the income tax according to the ability to pay principle. Income lends itself quite readily to accurate measurement. The more income one earns the higher tax bracket one finds oneself in. This is the essence of progressive taxation.

Actually the FICA tax is a proportional (flat) tax. We all pay the same rates - 6.2% for social security - up to the first $113,700 earned annually and 1.45% for Medicare with no annual income limit. The effective SS tax rate for high income earners is actually lower than for low and middle income earners since every dollar earned above the annual limit of $113,700 is not taxed (for SS). So an earner making $227,400 annually is taxed (for SS) at a rate of 3.1% - half the rate of low and middle income earners. The tax system that funds Social Security is a regressive one. The one thing the "cat food commission" will not discuss is eliminating the cap on income applicable to the SS tax. Any reasonable person knows the system is inequitable. If average income earners can afford to pay the full 6.2% SS tax on every dollar they earn so can high income earners.

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Are National Parks a Welfare Program? DontTreadOnMe Oct 2013 #1
I'm not sure what the problem is. arcane1 Oct 2013 #2
I'm on traditional Medicare and I paid into part A all my working life as Cleita Oct 2013 #3
My take is that your friend believes your health care status should be judged by SomethingFishy Oct 2013 #4
Have them explain their pay stub to you. Pretty simple. We all pay for it. IllinoisBirdWatcher Oct 2013 #5
Take a look at your paycheck. Warren Stupidity Oct 2013 #6
You're entitled to benefits because Congress says so. Igel Oct 2013 #14
As a society, we allow them to earn more. Live and Learn Oct 2013 #7
Your friend has Medicare and Medicaid confused notadmblnd Oct 2013 #8
Exactly. -caid is the good one. -care is the bad one. seattle15 Oct 2013 #19
Medicare is 'bad'? Tell us more. (nt) muriel_volestrangler Oct 2013 #21
Medicaid helps people in need. seattle15 Oct 2013 #23
And why is medicare "bad"? uppityperson Oct 2013 #24
I asked you why you think Medicare is bad, not why you think Medicard is good muriel_volestrangler Oct 2013 #30
welcome to DU you're from my neck of the woods! gopiscrap Oct 2013 #29
Help me debunk this argument: The Sun is not a star, it's a mighty chariot driven by a god. n/t TygrBright Oct 2013 #9
His or her views are based on a belief that..... Swede Atlanta Oct 2013 #10
Benefits Received Bobcat Oct 2013 #25
If your friend doesn't like Medicare then refse to take it. That will mean more for those who need Lint Head Oct 2013 #11
It is both FarCenter Oct 2013 #12
Rich Pay more in numbers because they make more, in numbers. By Percentage, they are behind LaydeeBug Oct 2013 #13
Your friend sounds like a very low information voter. Squinch Oct 2013 #15
I think roads are entitlements. Kingofalldems Oct 2013 #16
That's true. Do truckers pay more of their income in taxes than those who use public transportation? Squinch Oct 2013 #17
You both should have tried Wiki. DeSwiss Oct 2013 #18
It's insurance. It is absolutely not welfare. lumberjack_jeff Oct 2013 #20
Here's how: it is NOT currently means tested. pnwmom Oct 2013 #22
You pay into it. Turbineguy Oct 2013 #26
medicare- health care for the aged; a federally administered system of health insurance ava...... Sunlei Oct 2013 #27
The burden for the rich is far less than the burden on the poor. LostOne4Ever Oct 2013 #28
"entitlement", "earned", and "welfare" are all separate concepts Recursion Oct 2013 #31
You pay a Medicare Tax all of you working career. You paid for the benefit. nt bluestate10 Oct 2013 #32
The Medicare tax is around 6% on the first 100,000 dollars, regardless of how much more bluestate10 Oct 2013 #33
Actually, there is no cap any more on what is paid into Medicare MiniMe Oct 2013 #34
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