Why Can't The US Government Do This One Simple Thing... (user search)
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  Why Can't The US Government Do This One Simple Thing... (search mode)
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Author Topic: Why Can't The US Government Do This One Simple Thing...  (Read 788 times)
cannonia
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Posts: 960
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Political Matrix
E: 7.42, S: -1.30

« on: December 24, 2010, 06:14:44 AM »

I'm guessing the salary cap and the lack of a means test are both there for the same reason - to make Social Security a broad-based program to benefit the entire population rather than a wealth transfer program.  The salary cap is also the maximum earnings that can be used to calculate one's benefits.
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cannonia
Jr. Member
***
Posts: 960
United States


Political Matrix
E: 7.42, S: -1.30

« Reply #1 on: December 27, 2010, 04:39:50 PM »

I'm guessing the salary cap and the lack of a means test are both there for the same reason - to make Social Security a broad-based program to benefit the entire population rather than a wealth transfer program.  The salary cap is also the maximum earnings that can be used to calculate one's benefits.

I said nothing about means testing.

And like I said, removing the salary cap is not wealth transfer, it simply is making the tax truly conservative, rather than plutocratic.

I'm not sure your argument is substantive rather than merely rhetorical, but that's not true.

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If higher income earners pay increased taxes but do not receive a commensurate increase in benefit, then they are effectively subsidizing the program for the rest of the recipients.  Thus it becomes a wealth transfer.
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