The entire “problem” with the coming “shortage in social security” is that it has has been created out of whole cloth, lies, and gaslighting, by bribed Congresscritters servicing their bribers at our expense.
This meme that the “only solution to that problem is to cut benefits or raise taxes on the working serfs” is just more Trickle Down Economics which has been soundly refuted by history, math, logic, and reason over the last 50 years.
The simple real solution to the problem Congress created in the Social Security Trust Fund is to remove all the caps on income taxed for this purpose. You earn… from whatever source… you pay. (this also happens to be the solution to the Medicare “funding crisis”). The same also applies to Medicaid and welfare funding.
We’ve had folks run the numbers, and this one simple change would solve the “funding problem” for at least the next 75 years.
Yes, I know that the Heritage Foundation claims this “won’t resolve the problem” but in their numbers they’re lying by statistics through very conveniently ignoring the Fact that investment income is income and is completely ignored for these purposes, while being taxed at a substantially lower rate than wages. Heritage also lies by statistics through very conveniently ignoring the Fact that wealthy folks earn the vast bulk of their income and wealth by intentionally foregoing wages and taking stock options as a way to evade taxation; and the Fact that “our” bribed Congresscritters created that option because of this dynamic:
Which bribery of Public Officials (a RICO Felony) also caused them to declare the international game of Three Card Monte (off shoring) with their profits used by multinational corporations to be “legal” back in the 1980’s.
I call Trickle Down “Voodoo Economics” because it’s policies have been proven repeatedly to be about as effective for creating jobs and stimulating our economy as Voodoo is.
Here’s why that is:
This school of Trickle Down Voodoo Economics falsely asserts that the wealthy and multinational corporations are the job creators in a Consumer Driven Economy. They’re not, and never have been.
Were these false claims about which group creates the jobs, this last great depression would gave ended about 2 years after the tax cuts. It hasnt… almost ten years later. This money in the hands of the middle class and poor, which money (over 80% of it) gets spent in the lower levels of our economy… This spending by Consumers is, and always has been, what creates jobs in our consumer driven economy.
If the grand Orwellian lie of Trickle Down ” Economics ” actually worked as advertised we would have exactly the opposite of this:
If (big word that) Trickle Down actually worked as advertised we would have seen a large burst of new jobs, at decent full time wages, each time the tax rates on the wealthy and the multinational corporations were lowered. We did not see that happen… at all; we saw the exact opposite. What we in Fact saw was an increase in cash being sequestered off shore and zero job creation. Yes, a few individual corporations created a few jobs here and those few were touted by by corporate media’s “news” as proof that tax cuts work, but the trend was still a massive loss of jobs and “replacement” of full time, decent paying, jobs with minimum wage, part time jobs.
Here’s Nick again to talk about why this is and what’s coming if we don’t drive this idiocy out of public policy:
Bottom line: If you’re actually looking to fix the Congressionaly created problems in the SSI and Medicare programs the solution is incredibly simple: Remove all caps on income taxed for these purposes.
In Medicare we can also remove the Bush era “reform” prohibitions on Medicare negotiating drug and durable medical equipment costs. This one change of removing restrictions which no other nations have would cut our drug and durable medical equipment costs by nearly 60%.
If we also eliminated Certificate of Need laws (which directly violate the Sherman Antitrust Act) we would also eliminate the ability of medical multinational corporations to have a virtual monopoly on medical care.