Originally posted by sh76
Eliminating the cap on social security tax and applying (maybe a smaller) ss tax to capital gains would both make ss solvent for a century and eliminate the possibility of a high income person paying such a low percentage,
Sometimes your ideas are good. This one is butt ugly aweful.
Social Security was fought at its inception on the basis that it was a second income tax. Lawers argued it was not, but rather an excise. Dumb me. It always looked, smelled and acted like an income tax.
The positive thing is that it kept the most expensive program out of the general fund budget, leaving it to be responsible and measurable for itself.
Blending funds from other taxes would make it totally impossible to even evaluate the solvency of the program. As with a lot of things, SS is a blend of things we see and things which we don't. It has paid out benefit checks for nearly 8 decades, but altered countless times, both to increase benefits, put in new beneficiary classes, and to increase the tax.
All the while, the underwriting and actuarials are either sloppy or non existent. Most of what we hear is the retirement benefit, but SSI, widows and orphans benefits, and disability payments are big ones that have been added to SS without any real concern for the long term viability of the program.
To me, it is absolutely essential to keep SS separated from the rest of government, if it is to have any semblence of responsibility and accountabilty.