Gordon said there’s also a ton of uncertainty surrounding the Social Security program itself. Because of this, there will likely be reduced benefits in the future to keep the program solvent.
Couples who wait until the higher earning spouses max their benefits at age 70 face additional issues.
I can’t help but note that Newsweek didn’t even attempt to discuss the prospect of increasing payments to Social Security from upper income earners or requiring Congress to payback the “loans” they took from it to pay for military expenditures.
What about dropping the tax rate by a meaningful amount and raising the income cap to $1M?
I realize that most CEOs get modest salaries and almost all of their income from capital gains, but a move like this could bring in more revenue and be popular by reducing the tax burden on middle class and working class Americans.
If we’re dreaming, it’d be great to do away with OASDI as a separate, non-progressive, capped income tax and just roll it into the regular Federal rate. Bump the 10% bracket to 12%, the 22% to 26% and 37% to 45%. Hell, add a couple points to the CG rate.
But they sold OASDI to Americans like some kind of insurance policy - it’s right in the name - and they’ve been trying to turn that fiction into a personal savings account for decades. Social safety nets just don’t fit the mythos of strong, independent American who don’t need no gubmint.