Posts Tagged ‘Social Security’

167876_600

Special mention

167774_600 167830_600

Chart of the day

Posted: 11 February 2015 in Uncategorized
Tags: , ,

SocialSecurityInequality-fig1

I’ll admit, I’ve considered many different consequences of growing inequality over the years but I hadn’t thought of this one: the effect on Social Security.

According to the Center for American Progress,

Rising income inequality poses a direct threat to Social Security’s financial health. By virtue of the capped payroll tax, Social Security’s funding is directly tied to the full wages that low- and middle-income workers earn—but not to the full wages that higher-earning workers receive. Upward redistribution of income in the United States has meant that income has shifted away from workers whose full earnings are taxed and toward high-income workers whose additional dollars are exempt. At the same time, low-income workers whose wages remain stagnant contribute less in payroll taxes than they would if their wages were rising, while their benefits rise faster than their payroll tax revenue due to the progressive structure of Social Security’s benefits formula.

Thus, a significant portion of the expected shortfall of Social Security funds would have been reduced if either workers’ wages had kept pace with productivity or if the earnings cap had been raised to cover 90 percent of taxable income.

little-red-riding-hood-cartoon

Special mention

November 2, 2014 Quarantine

crowson 10-5-14

Special mention

1005wasserman 1653257_913816585295987_6931240900152800400_n

aD48E.So.91 copy

Special mention

WolveM20140922A_low RallT20140922_low

140877_600

Special mention

gop-budget-slashers-cartoon-1024x706 pope-francis-cartoon-bagley-495x352

8QiVz.AuSt.79

Special mention

140607_600 mike1dec-500x361