Monday, June 27, 2016

Selling Increasing The Cap : Separating Out The Noise


There are a number of reasons that people want to increase the cap on wages subject to payroll taxes.  Some reasons are good, some bad, and some noise. 

Supporters falsely claim that Social Security is a regressive tax, when the system is as a whole highly progressive.  It is intentionally designed to be progressive. 

They also claim that wage inequality has caused the problems of Social Security.  The data is cherry-picked to mislead the reader.  The changes occurred mostly in the mid-80s.  I think we can all agree that wage inequality in 2016 has nothing to do with how wages were allocated in the 1980s.

http://www.americanthinker.com/articles/2016/06/soaking_the_rich_to_pay_more_than_their_fair_share_for_social_security.html 

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