Latest Breaking News
In reply to the discussion: Sen. Mitt Romney suggests he'd back cutting retirement benefits for younger Americans [View all]TexasBushwhacker
(20,142 posts)When CEOs and other executives weren't making THOUSANDS of times the average worker, Social Security worked fine as long as 90% of wages were taxed. Because of the shrinking middle class and more and more $$$ going to people making over $400K, only about 84 % of wages are subject to SS taxes, and it's getting worse.
Personally, I like the donut hole idea that some have proposed. Make first cap $150K, then leave an untaxed window up to $500K. Then the wages over $500K would be subject to Social Security taxes. That untaxed window could be adjusted as needed, to hit the magic 90% mark. Hell, they might even be able to raise benefits more than the ridiculous COLAs they have now. SS would be solvent in perpetuity.
What idiots, including Romney, forget is that Social Security payments go straight back into the economy. Lowering payments HURTS the economy overall, and that's bad for everyone!