Two-thirds of Americans who are over the age of 65 depend on an average annual Social Security benefit of $15,168.36 for at least half of their income.
Currently, earned income in excess of $113,700 is entirely exempt from the 6.2 percent payroll tax that funds Social Security benefits (employers pay a matching 6.2 percent). 5.2 percent of working Americans make more than $113,700 a year. Simply by eliminating the payroll tax earnings cap — and thus ending this regressive exemption for the top 5.2 percent of earners — would, according to the Congressional Budget Office, solve the financial crisis facing the Social Security system.
So why don’t we talk about raising or eliminating the cap – a measure that has strong popular, though not elite, support?
- 65% of voters believe that President Obama has a mandate to raise taxes on the wealthiest Americans after being reelected last month. That includes 45 percent of the Republicans surveyed as well.
- 64% of voters believe that President Obama also has a mandate top protect programs like Medicare and Social Security during his next term. Considering Senate Republicans are now relying on filibusters of their own proposals related to the “fiscal cliff,” something tells us that Speaker Boehner was probably correct in telling House Republicans not to make holiday plans this year. source
The Social Security system, in my opinion, is a flawed design, period. But having said that, the design would work a lot better if we had stable demographic trends. We don’t have enough workers to support the retirees … . A third of the young people in America are not in America today because of abortion.
We need to look at the American people and explain to them that we’re broke," Boehner said. "If you have substantial non-Social Security income while you’re retired, why are we paying you at a time when we’re broke? We just need to be honest with people.
Minority Leader John Boehner on ensuring there’s enough money to pay for the Afghan war and how it will require reforming the country’s entitlement system.
Is this a Republican, talking ‘Means Testing’ for the rich? I would love to see such an approach for our obvious deficit problems. But like Pres. Obama said, "Next year when I start presenting some very difficult choices to the country, I hope some of these folks who are hollering about deficits and debt step up, because I’m calling their bluff."