April 25, 2012

Word: Social Security

The most effective way to strengthen Social Security for the next 75 years is to eliminate the cap on the payroll tax on income above $250,000. Right now, someone who earns $110,100 pays the same amount of money into Social Security as a billionaire. - Senator Bernie Sanders

2 comments:

Anonymous said...

While I like what Bernie Sanders proposes, I was told that this solution wouldn't work.
People who earn more than $250,000 would merely opt-out of the system if it were cheaper to buy health insurance on their own.

An alternative would be to fund Social Security directly with Payroll / Income Tax. Of course, tax rates would be higher, but nobody would be able to opt-out.

Dan said...

I like this method better, by John Barro at Forbes:

http://www.forbes.com/sites/joshbarro/2012/04/23/how-to-fix-the-social-security-solvency-crisis-for-just-49-99/