The War On Entitlements
Tom Edsall on politics inside and outside of Washington.
The debate over reform of Social Security and Medicare is taking place in a vacuum, without adequate consideration of fundamental facts.
These facts include the following: Two-thirds of Americans who are over the age of 65 depend on an average annual Social Security benefit of $15,168.36 for at least half of their income.
Currently, earned income in excess of $113,700 is entirely exempt from the 6.2 percent payroll tax that funds Social Security benefits (employers pay a matching 6.2 percent). 5.2 percent of working Americans make more than $113,700 a year. Simply by eliminating the payroll tax earnings cap and thus ending this regressive exemption for the top 5.2 percent of earners would, according to the Congressional Budget Office, solve the financial crisis facing the Social Security system.
So why dont we talk about raising or eliminating the cap a measure that has strong popular, though not elite, support?
http://opinionator.blogs.nytimes.com/2013/03/06/the-war-on-entitlements/
Yes, why don't we hear much talk about adjusting the cap? Because it isn't painful enough? Because it is far too equitable and moral a solution? Because it not only leaves the program intact, but strengthens it? Curious....