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Everyone is somewhat in agreement that the Social Security Trust Fund may have to be shored up at sometime in the future, but no-one has addressed the fact the the Social Security Payroll Tax is the most regressive tax that we have. Everyone pays the same percentage from the first dollar that they make, no exemptions or deductions, regardless of what their income is...until they reach the cap after which they pay nothing. For most people this is 100 percent of their income. For those who have reached the cap the percentage of their income is continually diminished. For those earning millions, the percentage is trivial.
Further, we are then taxed on our social security contribution. We are not permitted to deduct it from our gross income.
One might argue that the wealthy could never recover their contributions in their lifetimes. This is true, but neither would the poor wage-earner who dies before the age of 65, perhaps because of the lack of access to quality of medical care.
Social Security should be a flat tax, but, of course, proponents of a flat tax would rebel against this form of a flat tax because it would increase their tax burden instead of decreasing it.
Second, disability payments should not be charged to the Social Security Trust Fund, but come out of the general fund. Social security was designed as retirement insurance, not disabuility insurance.
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