How to Extend Payroll Tax Reductions

[Freedomlover]

The answer to this issue is quite simple and will meet the requirements of paying for this extension and somewhat meet the requirements that Democrats seek by asking higher income people to pay more to support the tax cut extension.

My proposal is that Congress increase the amount of income that is subject to the Social Security tax from the current amount of about $102,000 to an amount that would cover the cost of extending the tax reduction. This way the money would make Social Security whole by making up what is being "lost" through the lower rate under the extension. This approach should be mostly noncontroversial since the vast majority of Americans pay SS on 100% of their incomes. Therefore, to ask higher income people to contribute more is only asking them to support the higher benefit they will recieve at the time of their retirement.

With the revenue coming in under this approach it would stop the Democrat plan to put the tax increase into the general fund and thus be spent. With the revenue coming in directly to SS the Congress could specify that those funds be used only to support Social Security to offset the losses I mentioned above. It would be my prediction that this plan would receive the support of a vast majority of Americans and further the efforts to reduce the deficit and thus the national debt.

 

[Avatar4321]

Or they can simply cut government spending and give the people a real break.

 

[The Rabbi]

Or they can skip the whole stupid idea. We have had this "tax cut" for how long? How much benefit have we seen from it?