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Author: PVFOOL Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 19221  
Subject: Re: Social Security Date: 4/5/2000 2:23 AM
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Author: Patpaprboy Date: 4/4/00 12:00 AM Number: 3379
The current method of taxing SS is to start taxing at the 1st dollar earned and to tax every dollar earned until your income reaches about $70,000. From that point on no one pays SS tax. Seems to me that penalizes the lower income tax payers to the benifit of higher income earners. How about exempting the first $10,000 of income from SS tax for everybody and extending the other end to whatever # would be neccessary to make up the difference? That would give EVERYBODY an exemption on the first $10,000 earned, thus helping low income earners and shifting some of the tax burden to those who can better afford it?

There's a bit of history involved here. Social Security was originally conceived to be a safety net for the "lower income" people. Rich people wouldn't need it. It was never intended to be a major part of (rich people's) retirement income. This explains a lot of the tax and other pecululairties about the law. Trouble is, as inflation and other factors crept in, the term "Rich" has become skewed. In 1935, $100,000 in assets and income more than $5,000 a year would have been "Rich." Now, $1,000,000 would barely qualify. It was originally figured that the "lower income" would benefit from having the "rich" contribute (more than) their fair share. Hasn't turned out that way, in a lot of cases. But the need hasn't gone away, it's gotten worse. So, Qwitcherbitchin, you are rich!

Regards
PVFOOL
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