If they were to significantly raise the Social Security Wage Base, as Democrats have suggested, then how could?

they not raise the Social Security benefit maximum, without turning Social Security into another form of welfare?

The Wage Base is the cap on the taxable income amount, because there is a maximum amount of benefits you can receive, based on that Wage Base. Right now it is $106,800. You can't get taxed on income over this amount, because your maximum benefits are based on a percentage of this amount.

So the problem here is, outside of turning Social Security into another form of wealth redistribution, if you raise that cap on taxable income, you must equally raise the maximum benefit. However, if you raise both, then it is a wash, any additional money coming in will go back out, and we are no further ahead, and it does not pay for the payroll tax cut that we want to extend.

The only way this would work is for the left to have their cake and eat it too...turn it into essentially what is an additional hidden welfare tax on the rich, by raising the Wage Base, but offering no additional benefit to those who pay more into the fund. That eliminates the one and only thing Social Security has going for it now, that being, you are supposed to get back what you put into it.

Outside of the typical emotional response by the left of "the rich have more money so they can afford it", how can it be defended that we raise the Wage Base, but offer no additional benefits for those who will end up paying more into the fund (those who make over $106,800)? There is no logical or economically viable reason for it.

Update:

My source is the Social Security government website...for those of you too lazy to look yourself, or if for some reason you think I pulled $106,800 out of a hat.

Update 2:

Good job, Vern86, going in and thumbing yourself up a bunch of times and everyone else down with all of your sock accounts. You seriously need to get a life.

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    The Self Employed pay both sides of that tax, so by lifting the cap, Small business owners will carry a massive tax burden. For some reason, the Left never bothers to do the math. Why would someone who makes 150K or 200K keep working for everyone but themselves? Do the math first.

    IT'S ALMOST 13% ON TOP OF FEDERAL, STATE AND LOCAL TAXES. THE PEOPLE WHO PAY THE MAX ARE OUT $2 MILLION OVER THEIR LIVES AS IT IS (COMPOUNDED INTEREST OVER 40 YEARS). THE GOVERNMENT IS GIVING YOU PEOPLE A TERRIBLE DEAL, AND YOU ARE ON THEIR SIDE RATHER THAN THINKING AND DOING FOR YOURSELVES. UNBELIEVABLE.

    What a waste of time. No Liberal cares what happens to people who work their tail off.

    Source(s): EDIT: SEE? THEY DON'T CARE WHO PAYS WHAT AS LONG AS THEY GET SOMEONE'S WAGES! 2 THUMBS DOWN WITHOUT DOING THE MATH! THEIVES! NOTHING BUT FING THIEVES!
  • 9 years ago

    If the social security benefits are going to raise I Promise you it won't be those dumbo crates that raises it.My Father both Grandfathers and all of my uncles paid in to S.S. and never collected a dime.I worked for 52 years before retiring.My wife worked for over 26 years.We did not get a cost of living increase Sense that moron Obama and his idiot sidekick Joe Biden took office.They say the c.o.l. hasn't went up enough sense 2008 to justified an increase I would love to see any politician live on what we old folks have to live on.We can't have things like cable or gas for our cars or new clothes or a little snack.Hell no.We have to watch every penny.How can I afford a computer? I'm in the lobby of our rest home.Thank God.I have cancer.not long from now my wife can have a few things but when I go.They will cat her check down so far she wot be much better off.NO NO NO my friend democrat es are not going to do a d*** thing to help make life easier.So don't worry abut what they tell you about Social security running out of money.That's a myth.The dumbarats are going to starve us old people to death so they don't have to pay us.

    Source(s): aPissed off old man that knowsthey have already screwed us your next
  • Anonymous
    9 years ago

    IF...

    IF we are going to keep Social Security then two things need to happen:

    1) Remove the income cap on "contributions" and have all income assessed the 12% "payroll tax"

    and

    2) Raise the retirement age by two years on everyone.

  • 9 years ago

    Only Republicans are horrified that taxation might spend money taxed from a wealthy person on a poor person.

    so there really is no reason to guarantee that the higher contributions result in a higher old-age income.

    Current contributions pay current retiree benefits - it is not an investment vehicle. It already IS a transfer of wealth from working-age to elderly. It has been that way for > 50 years.

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  • Anonymous
    9 years ago

    Alot to read there, but you make many good points. I like my tax break I am getting now, but it is true that if you pay more to get no more out of it, it essentially turns what is supposed to be a savings program into an entitlement for all of those who make under $106,800. And don't think for a second that middle and lower income earners won't see that extra 3.1% come right back at them in the form of higher consumer prices and/or layoffs, because the higher income earners are the business owners, and they always find a way to mitigate their losses...this is why they are wealthy to begin with.

    Besides, math is not the libs strong point, emotion and class warefare is...so they really don't care how this is paid for as long as it can make their Messiah look good.

  • Anonymous
    9 years ago

    They think its fair if a rich guy is forced to pay 12% on ALL income SS taxes on top of income taxes even though there is a cap on what SS benefits one can receive.

    Its unfair

    If a guy made $5 million he would have to pay $600,000.00 in social security taxes alone! A rip off!

    Thats not the way SS was designed.

  • 9 years ago

    As usual. A wild statement with no sources.

  • Anonymous
    9 years ago

    I used to think libs just sucked at math, but I see here that several libs here know that the math doesn't add up and don't even try to justify such a move, but openly admit it would be like welfare, and that such a redistribution would be "fair". Yeah, look how well such ideas have worked in places like Greece.

  • Anonymous
    9 years ago

    Well, look who just caught up...That is EXACTLY what it should be, Ace. Those that gained wealth on the low wages of the working class, must now pay up. They did away with pensions, so that's the alternative.

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