Home > 1Future > New Study Identifies Revenues for Doubling of Social Security Payout

New Study Identifies Revenues for Doubling of Social Security Payout

By Steven Hill

Published on Wednesday, August 18, 2010 by CommonDreams.org

Instead of cutting back Social Security, what we need to do is expand it by doubling the individual payout. That would cost about $650 billion annually for the 51 million Americans who receive benefits. This expanded version — call it Social Security Plus — could be paid for with revenues identified in a new study (pdf) I wrote for the New America Foundation. Here’s how.

First, lift Social Security’s payroll cap that disproportionately favors the wealthy.  Currently Social Security only taxes wages up to $106,800 a year, and any income earned above that is not taxed. The net result is that poor, middle class, and even moderately upper middle class Americans are taxed 12.4 percent (split between employee and employer) on 100 percent of their income, but the wealthiest Americans pay a much lower percentage. A lawyer making $500,000 a year effectively pays only 2.5 percent, and millionaire bankers pay a paltry 1.2 percent.

To read the entire post click here.

Sounds good doesn’t it? Unfortunatley these aren’t the kinds of ideas this isn’t the kind of idea that’s getting the support of the Washington establishment. They say it’s broke want to cut benefits and raise the retirement age. Here is what commentator Sam Seder has to say.

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