The most recent proposal by Senate Democrats calls for reducing the share of Social Security payroll tax paid by employees to 3.1 percent from the already reduced level of 4.2 percent. If Congress takes no action, the tax is to revert to 6.2 percent next month. The cut, under the proposal, would be offset by a 1.9 percent surtax on modified adjusted gross income in excess of $1 million, which would take effect in 2013.
Everyone is saying that the Social Security Trust Fund is on the road to bankruptcy by the year 2030 but they continue to rob it of income. This time it is a Democratic congress withdrawal with the backing of their president!! I know we are in difficult times but this tactic just seems to be making it worse, at least in the future. Politics, and I include both parties in this, has just become a very short term thing. Those yahoos never look beyond the next election for any of their actions.
What we need now is someone who is a forward looker. I had hoped that Obama was going to be that person but he has utterly let me down in that regard. This current tactic deserves the old label of “Robbing Peter to Pay Paul”. Since there seems to be too many against putting taxes on the super-wealthy back to where they were before Mr. Bush it seems the only way to tackle this is with a complete overhaul of our tax system. Tax codes have become a giant hairball. They are filled with special exemptions for the favored ones. There are thousands of pages of tax code that single out one small group of people for special treatment. The only way to completely gut these things is a complete re-write and simplification. But the trouble with this approach is that I don’t trust any of the current leadership in congress to do this without a hand out to those who pay their re-election bills and of course that mean some more “special treatment”.
But I do know that it is not common sense to pull money out of the one place that needs it to pay future obligations.
But what do I know….