Friday, August 26, 2011

Sanders: Strengthen Social Security by taxing large incomes

Sanders: Strengthen Social Security by taxing large incomes; The Raw Story

AA forthcoming bill to be proposed by Sen. Bernie Sanders (I-VT), the only Democratic Socialist in the U.S. Senate, would make incomes above $250,000-a-year subject to the payroll tax, a move he says will make the nation's most beloved social safety net program, Social Security, significantly stronger.

The current payroll tax, which is Social Security's sole source of funding, only applies to incomes up to $106,800-a-year. Sanders' bill would not tax incomes between that amount and $250,000-a-year.

"Unfortunately, Republicans in Congress and too many Democrats, have been discussing harmful cuts to Social Security as part of an overall scheme to balance the budget on the backs of the elderly, the sick, the children, and working families," Sanders wrote in an essay published Thursday. "That is wrong, it is unconscionable, and it must not happen!"

He added that the program, which the Congressional Budget Office says is fiscally sound through 2038, has been dramatically successful in reducing the rates of senior citizens in poverty, but drastic cuts could change that.

"Right now, an American who makes $106,800 a year pays the same amount of money into the Social Security system as a millionaire or a billionaire," he wrote. "That is because today, all income above $106,800 is exempt from the Social Security payroll tax. As a result, 94% of Americans pay Social Security tax on all of their income, but the wealthiest 6% do not. That is wrong and that has got to change."

Sanders said his bill would ensure Social Security remains solvent for the next 75 years.

Read the rest here.

: At least with a Ponzi scheme you find out eventually when you've been duped; but with social security and the government class controlling it, you never slaves!

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