Financing Social Security and Medicare
Deficit hawks are right in pointing to how funding Social Security and Medicare payments will become untenable unless remedial steps are taken. Either payout formulas have to be constricted or additional revenues have to be generated. Republican sentiment seems to favor raising to 70 the age when payouts begin. Most Democrats oppose restrictions on payouts.
Some politically brave souls have pointed out that there’s an obvious solution to the problem: Eliminate the $160,000 cut-off on payroll taxes. It’s grossly inequitable that, under the present system, people who make $50,000 a year, or $150,000 a year, pay a tax that is a much great percentage of their earnings than that paid by people making $500,000 a year, or $5,000,000 a year. Tomorrow I’ll offer my thoughts on why this gross inequity has been perpetuated.