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The rich at the time might very well have opposed having to pay the 1% social security tax. The inception of the program was based on a variety of too good to
by grandalf 16y ago
The rich at the time might very well have opposed having to pay the 1% social security tax.
The inception of the program was based on a variety of too good to be true premises, the 1% payroll tax being the most notable, so I interpret the cap more as a symptom of this fantasy... and possibly a consideration of the stigma attached to welfare programs in those days.
- anamax 16y agoI understated things a bit - it wasn't just the originators, but SS advocates, at least until recently. If you want to remove the cap, then either you're willing to pay Ross Perot $500k/year in benefits or you're going to have uncapped taxes and capped benefits, that is, another 15% tax. Do you really think that rich people today won't object to another 15% tax?