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1. At least in the US, contributions to social security stop once you hit 160k, making it a regressive tax. Raise that cap and like magic, the system is solvent

by jtr1 4y ago

1. At least in the US, contributions to social security stop once you hit 160k, making it a regressive tax. Raise that cap and like magic, the system is solvent. 2. Growing home prices come from a lack of supply. And you’ve completely flattened an entire generation into one wealth class, which is a gross distortion of the facts.

throwaway2037 4y ago
Wow, I'm old. In my brain, it used to be about 80K. That was a long time ago! Here is the official history: https://www.ssa.gov/oact/cola/cbb.html https://www.ssa.gov/oact/cola/cbb.html The jump between 2022 and 2023 is huge.
- simoncion 4y ago
  > The jump between 2022 and 2023 is huge. It's not that far off from actual inflation during that period (and inflation that is currently ongoing).
mynameishere 4y ago
That doesn't make it "regressive". The untaxed dollars after 160k don't count towards benefits. Rather, the tax is extremely progressive due to the various "bends". As you contribute more into the system, they make the per-dollar value of your contributions go from .9 to .3 to .15. Anyway, Social Security is fine. It's Medicare/Medicaid that's going to nuke the budget.
- YokoZar 4y ago
  The payroll tax is an income tax with the following brackets: 0-147k: 12.4% 147k+: 0% The number goes down at the higher income bracket, which means you pay less % of your money in payroll taxes the more you make. That is the very definition of regressive.
  - jandrewrogers 4y ago
    Those aren’t the only tax brackets high earners are subject to. Aggregate tax load is roughly still progressive. That aside, as a matter of policy, uncapping the taxes would destroy the popular notion that the amount of Social Security you receive reflects your contributions. If the public believed it was literally just income tax, and if there was no cap there would be no reason to not just adjust the income tax by that amount, it would be subject to the same politics as income taxes and could be cut on a whim. Treating it differently than income taxes, even when it is not, is essential for its survival. If they didn’t cap it, top income tax rates would be >60%, and there isn’t much appetite for that.
dntrkv 4y ago
Removing the cap would not fix the system, it would only buy us additional time.

by jtr1 4y ago

throwaway2037 4y ago

Wow, I'm old. In my brain, it used to be about 80K. That was a long time ago! Here is the official history: https://www.ssa.gov/oact/cola/cbb.html https://www.ssa.gov/oact/cola/cbb.html The jump between 2022 and 2023 is huge.

simoncion 4y ago
> The jump between 2022 and 2023 is huge. It's not that far off from actual inflation during that period (and inflation that is currently ongoing).

mynameishere 4y ago

That doesn't make it "regressive". The untaxed dollars after 160k don't count towards benefits. Rather, the tax is extremely progressive due to the various "bends". As you contribute more into the system, they make the per-dollar value of your contributions go from .9 to .3 to .15. Anyway, Social Security is fine. It's Medicare/Medicaid that's going to nuke the budget.

YokoZar 4y ago
The payroll tax is an income tax with the following brackets: 0-147k: 12.4% 147k+: 0% The number goes down at the higher income bracket, which means you pay less % of your money in payroll taxes the more you make. That is the very definition of regressive.
- jandrewrogers 4y ago
  Those aren’t the only tax brackets high earners are subject to. Aggregate tax load is roughly still progressive. That aside, as a matter of policy, uncapping the taxes would destroy the popular notion that the amount of Social Security you receive reflects your contributions. If the public believed it was literally just income tax, and if there was no cap there would be no reason to not just adjust the income tax by that amount, it would be subject to the same politics as income taxes and could be cut on a whim. Treating it differently than income taxes, even when it is not, is essential for its survival. If they didn’t cap it, top income tax rates would be >60%, and there isn’t much appetite for that.

dntrkv 4y ago

Removing the cap would not fix the system, it would only buy us additional time.