Thursday, March 24, 2011

Social Security taxes paid for tax cuts for rich

Social security taxes are regressive. There is a cap on social security taxes, currently $106,800. So someone making $5 million a year ($5,000,000) will pay the same amount of social security tax as someone making $106,800.

For many years, social security taxes have been bringing in more money than was paid in social security. This was supposed to ensure that there would be enough when baby boomers started retiring.

This has allowed taxes to be lowered on the very rich for years.

So now that baby boomers are starting to retire, the very rich are fighting to cut social security benefits, so that they can continue to be subsidized by the rest of us.

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