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 don’t 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....
