Wednesday, September 17, 2008

Eliminating the Social Security Payroll Cap and Other Wonderful Ideas

Dear Robin Hood,

I thought that you would like this video clip. Maybe O'Reilly disagrees with Mr. Obama, but I say, "You go, neighbor!" Wikipedia says that you, Mr. Hood, are "an archetypal figure in English folklore, whose story originates from medieval times but who remains significant in popular culture where he is painted as a man known for robbing the rich to give to the poor and fighting against injustice and tyranny." If that is what O'Reilly means by calling Obama Robin Hood, I think I'll vote Democrat!

One of the most maddening realities of our tax system, to me, is the cap on social security taxes. If Obama swoops down and wrests that booty from the rich and super rich, I would say that a good deed has been done for sure and the men and women of Sherwood Forest will have much about which to be merry.

Heigh Ho,



cadh 8 said...

OK, I can't post my Youtube video of Robin Hood, the Disney movie, But go watch the video and you will see that when Robin Hood came to take from the rich and gave to the poor, he was taking money from people who were crooks stealing from churches, church mice, and dogs with broken legs (OK, well at least in the Disney version). But these were criminals, and as much as you may think Bill O'REilly is a criminal or that his money is ill gotten, the fact is that both he, and Obama, and Dave Ramsey, and Bill Gates did not steal from the poor. They worked VERY hard, made good choices and investments, and saved more than they spent. These people are the backbone of our economy. So I don't think even Robin would steal from them.

So are taxes stealing? Of course not. But we are talking about things like, "Should we tax the richest people at 34% or 39%?" To lose almost 40% to the government is quite awful, in my mind, especially when you are not just talking about rich people who make a big paycheck, but you are talking about small buisnesses. That is another matter. But the point I wanted to make is that there is a difference between a wealthy American and the Sheriff of Nottingham.

cadh 8 said...

Oh, and one other thing. Nothing drives me nuts more than the thought that people who have paid NO taxes would get a tax rebate. Give them some other needed benefit like more food stamps or more on their SSI, but why would you get a rebate for taxes you never paid. That makes me crazy.

Anyway, that is just another point altogether. I know that everyone pays sales tax, but still...

brd said...

Think about it this way. The waitress at the diner who makes say, $20,000, pays via deductions from her income Social Security taxes on 100% of her income. But the rich, hm.m.m., 100% of their income is not taxed. There is a cap in place. In 2006 it was $94,200, in 2007 it was $97,500, and in 2008 it will be $102,000. So… Every dollar over $102,000 that you earn in 2008 will be free of the 6.2% if an employer is covering 1/2 (or 12.4% if self employed) Social Security hit, although it will still be subject to the Medicare portion (1.45%, or 2.9% for self-employed).

That isn't equal taxation. The person earning say, $4 million pays tax on only 3 to 4 percent of their earnings. That isn't fair. Robin Hood would not consider that just.

Most of "the rest of us" don't earn enough to even realize that there is such a thing as a cap on Social Security taxes!

cadh 8 said...

OK,OK, I give! :) I was getting on a soap box that was off topic from your post a bit. I can definitely see the sense in what you are talking about with Social Security. Certainly when that cap was set not many people made 90,000. Nowadays, that is no longer "super rich". I can agree with at least raising that cap, although benefits should match. That is, you should be able to collect SS benefits in conjuction with what you put in. I don't understand how those benefits work, but benefits out should match what you pay in on some level.

But I was thinking more about the tax on those who make over $250,000 that Obama Hood keeps talking about. Taxation should be done fairly, and I can cede the point that perhaps the SS cap is not fair now.
But paying more taxes is not "patriotic" in my mind. We do not pay taxes to be "nice". It is a civic duty to pay for activities that the government must do because the private sector cannot. But we should not feel that the more taxes we pay, the more "neighborly" we are.

I must say that there is a place for Obama Hood right now, though. As far as Robin Hood fought the corruption that led to poverty and unfair taxation, we need political leaders to fight the rampant corruption that is causing the crazy economic things we are seeing in the buisness sector today. So if Obama can do that, I am all for it!!

brd said...

It's hard to really know what is really good and what is really bad in all this, isn't it?

Anonymous said...

OK, we ALL work work hard. And I for one have no interest in putting any money into social security. I would much rather invest it myself. But, the government decided to protect us from ourselves and make a national "retirement fund". It is lousy, I am not counting on it for my retirement, and congress stole all the money out of it in an attempt to balance the budget. So... Now everyone should pitch in, same percent all the way up. Sure... cap benefits, but those making more sure can afford more than those making less, and currently this is the opposite. The rich are not going to all of sudden not have enough to retire on, but they can at least keep paying Social Security past Jan 10!! I do and they should to.

brd said...

I am with you anonymous!