As Congress toys with the idea of raising the retirement age in order to deny paying Social Security benefits to millions of workers, Economic Policy Institute economist, Monique Morrisey makes a few interesting points about the program in last Sunday's New York Times. She reminds us that earnings above $106,800 are not taxed for SSI. So Bill gates, one of the world's richest men, and LeBron James, the basketball player whose 2011 salary is estimated to be more than $14 million, and your doctor if he or she earns more than $106,000, will pay $6622, the maximum. "Look at it this way" Ms Morrissey adds, "If we got rid of the employer cap, the Miami Heat would need to shell out about $900,000 in Social Security taxes on Mr. James’s reported $14.5 million salary next year." She makes some very simple but important arguments. Because, as we all know, the inequality gap in the US has gotten wider as the rich have gotten richer at our expense, a larger portion of higher earnings escape the SSI tax, 16% of earnings.
It is important to raise these issues as an example of the way they set up the tax system to benefit themselves and as a counter to their arguments that money cannot be found except in the pockets of workers and our families. But it has to be made clear that the Bill Gates' of this world and the political parties that represent them will not voluntarily hand over the loot they have plundered from society, whether they pass laws or not. Yes, we can force concessions from them and so we should, but each victory will only be a temporary one and serves best as a political education, a lesson in helping us understand better the relationship between the classes and how the world around us really works. It's like a Union contract, the second that baby is signed, the boss is busy violating it. We learn through our experiences though and every struggle against the forces of capital teaches us about the world in which we live and that reforms are not enough; all the reforms won through years of struggle in the US are under attack or being eliminated altogether. It is the economic system under which we live that is the culprit and it is this that has to be transformed.
1 comment:
Bill gates has billions of dollars because most people think he deserves it.you will hear reasons like,he worked hard for it,or it's the American way.people are so skeptical of socialism because it disturbs their dreams of making a fortune.we probaly have very few truly heroic people in the world.do we then forget about the very poor people in this world?should we let these insanely rich people have more and more of the profits.when tea baggers are protesting for paying less taxes,why are they not first and foremost asking the rich to pay their fair share.they need to understand the very big point that this blog makes over and over again.more and more wealth goes to fewer and fewer people.
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