There's an easy fix for Social Security
I was discussing with a neighbor what should be done to save Social Security and Medicare. We both agreed the simplest and most efficient way was to raise or eliminate the cap.
The conservatives will call this socialism and unfair taxation. But let's look at the numbers.
A family with one worker making $100,000 will pay 8 percent of his salary to Social Security and Medicare.
For each doubling of this salary the percentage is halved, at $500,000 a person would pay 1.6 percent toward Social Security and Medicare. Whereas if a family has two people earning $100,000 they still pay 8 percent of their combined salary.
If there were no cap those at $500,000 would pay 10 times that of someone making $50,000.
Imagine what sports or entertainment people would bring to the table.
Social Security and Medicare would be saved with minor hardship on those affected by the increase.
One other surprising fact came up in our discussion that conservatives may wish to ignore.
When America was at its greatest rate of growth in prestige and economic power from 1950 to 1980; the tax rate on the ultra rich was 80 percent. Ronald Reagan and George H.W. Bush decreased the tax rate on the rich by 42 percent (70 percent to 28 percent).
Since then America has been in decline with a small rise when Clinton increased the upper bracket to 39 percent. George W. Bush lowered the highest tax rate and look where we are.
Please research the numbers in this letter you will find them to be accurate not just rhetoric plucked from the sky.
Robert Boros
Mount Prospect