Solution+-+Increasing+Payroll+Taxes+on+Some+of+All+Workers

= Increasing Payroll Taxes on Some or All Workers! =



Summary:
To reduce the Social Security's large imbalance the small percentage of Social Security payroll taxes given to Medicare could be raised by 1% or 2%. Additionally to bring in more revenue to Social Security and Medicare the payroll tax cap could be eliminated. With the cap only the first $102,000 earned are taxed, meaning that any money earned after that point is not taxed. By removing this cap and having all earnings taxed could close between half and all of Social Security's huge deficit.

Positives:
1. Would shorten the gap of the Social Security imbalance 2. This will be more fair for everyone

Negatives:
1.affect lower and middle class earner 2. People who are living paycheck to paycheck will have a increasingly difficult time to paying the tax increase since they have little money to spare.

people who own homes and families are having a hard time now, and with increase in social security they will have to work even harder.

Who would argue for this?
- people who do not want social security to colapse - lower and middle class may argue to make it more fair - people who receive social security

Who Would Argue against?
- removing the social security tax cap will be argued against the wealthy.

What Will Happen To Social Security

 * Increase the payroll tax rate by 2% today. That would be 1% on the wage-earner and 1% on the employer, going from 6.2% to 7.2%;
 * Raise the earnings cap so that it will cover 90% of earnings. That would increase the cap from $106,800 to $172,000;
 * Use revenues from the estate tax to cover the shortfall (assuming there is an estate tax anymore);
 * Transfer Social Security start-up costs to general revenues;
 * Raise the return on assets. This is not private accounts; this is having SSA invest the trust fund in higher yielding investments;
 * Wait for 2037 and raise taxes then.

http://www.fedsmith.com/article/2295/what-will-happen-social-security.html

Obama Says Raising Taxes Will Fix Social Security
President Obama says Social Security is slowly running out of money but that it can exist well into the future with a slight fix. The system is funded with a tax on earnings, up to $109,000 a year. Obama says lifting that cap to tax a larger share of income would be one way to extend the system of monthly payments for retirees. It also would be unpopular with some. Without an adjustment, Obama said Social Security will start to run out of money in about 20 years as more people begin collecting benefits.

http://cnsnews.com/node/61630

Aimee Konkolics Paige Phillips Kate Martin