this post was submitted on 21 Nov 2023
130 points (96.4% liked)

politics

19144 readers
2339 users here now

Welcome to the discussion of US Politics!

Rules:

  1. Post only links to articles, Title must fairly describe link contents. If your title differs from the site’s, it should only be to add context or be more descriptive. Do not post entire articles in the body or in the comments.

Links must be to the original source, not an aggregator like Google Amp, MSN, or Yahoo.

Example:

  1. Articles must be relevant to politics. Links must be to quality and original content. Articles should be worth reading. Clickbait, stub articles, and rehosted or stolen content are not allowed. Check your source for Reliability and Bias here.
  2. Be civil, No violations of TOS. It’s OK to say the subject of an article is behaving like a (pejorative, pejorative). It’s NOT OK to say another USER is (pejorative). Strong language is fine, just not directed at other members. Engage in good-faith and with respect! This includes accusing another user of being a bot or paid actor. Trolling is uncivil and is grounds for removal and/or a community ban.
  3. No memes, trolling, or low-effort comments. Reposts, misinformation, off-topic, trolling, or offensive. Similarly, if you see posts along these lines, do not engage. Report them, block them, and live a happier life than they do. We see too many slapfights that boil down to "Mom! He's bugging me!" and "I'm not touching you!" Going forward, slapfights will result in removed comments and temp bans to cool off.
  4. Vote based on comment quality, not agreement. This community aims to foster discussion; please reward people for putting effort into articulating their viewpoint, even if you disagree with it.
  5. No hate speech, slurs, celebrating death, advocating violence, or abusive language. This will result in a ban. Usernames containing racist, or inappropriate slurs will be banned without warning

We ask that the users report any comment or post that violate the rules, to use critical thinking when reading, posting or commenting. Users that post off-topic spam, advocate violence, have multiple comments or posts removed, weaponize reports or violate the code of conduct will be banned.

All posts and comments will be reviewed on a case-by-case basis. This means that some content that violates the rules may be allowed, while other content that does not violate the rules may be removed. The moderators retain the right to remove any content and ban users.

That's all the rules!

Civic Links

Register To Vote

Citizenship Resource Center

Congressional Awards Program

Federal Government Agencies

Library of Congress Legislative Resources

The White House

U.S. House of Representatives

U.S. Senate

Partnered Communities:

News

World News

Business News

Political Discussion

Ask Politics

Military News

Global Politics

Moderate Politics

Progressive Politics

UK Politics

Canadian Politics

Australian Politics

New Zealand Politics

founded 1 year ago
MODERATORS
 

Gordon said there's also a ton of uncertainty surrounding the Social Security program itself. Because of this, there will likely be reduced benefits in the future to keep the program solvent.

Couples who wait until the higher earning spouses max their benefits at age 70 face additional issues.

I can't help but note that Newsweek didn't even attempt to discuss the prospect of increasing payments to Social Security from upper income earners or requiring Congress to payback the "loans" they took from it to pay for military expenditures.

you are viewing a single comment's thread
view the rest of the comments
[–] [email protected] 11 points 1 year ago (2 children)

I don't know about 'lie,' but it's certainly a misrepresentation. For decades, there were so few retirees that SS taxes were billions more than SS payments, and all of that surplus bought Treasury bonds. i.e.: loans to run the rest of the government. Payments now are running around $100B/year more than taxes ($10B if you include interest on those bonds), which is around 8% of tax revenues. At that rate, the last of the bonds gets sold in 2034, and something will need to get done about the 8% imbalance.

The misleading part is letting people infer that "running out of money" means no money to pay beneficiaries, like SS is some kind of bank account. Fixing the deficit isn't that hard, though. Cut benefits by 8%. Raise SS tax rate to 8.25%. Raise the income cap to $300k. None of those would be especially popular, and there's no reason to do any of them now, because there's still nearly $3T of Treasuries sitting in the SSA account. In the meantime, fearmongering about the issue is a great way to turn out the 65+ crowd and near-retirees, and a great way to demoralize the under-40 crowd.

[–] [email protected] 14 points 1 year ago (1 children)

Correct me if I'm wrong but you don't need to raise SS rates at all, just lift the cap. Simple. 168k is the max for 2024 and that seems absolutely silly nowadays.

[–] [email protected] 7 points 1 year ago

It's hilarious that something that was designed to be the everyman's social security net operates on a regressive tax.

[–] kale 2 points 1 year ago (1 children)

What about dropping the tax rate by a meaningful amount and raising the income cap to $1M?

I realize that most CEOs get modest salaries and almost all of their income from capital gains, but a move like this could bring in more revenue and be popular by reducing the tax burden on middle class and working class Americans.

[–] [email protected] 1 points 1 year ago

If we're dreaming, it'd be great to do away with OASDI as a separate, non-progressive, capped income tax and just roll it into the regular Federal rate. Bump the 10% bracket to 12%, the 22% to 26% and 37% to 45%. Hell, add a couple points to the CG rate.

But they sold OASDI to Americans like some kind of insurance policy - it's right in the name - and they've been trying to turn that fiction into a personal savings account for decades. Social safety nets just don't fit the mythos of strong, independent American who don't need no gubmint.