"Question for Bruno:

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“Question for Bruno: why is the ss tax capped at a caetrin percentage? If I make a millon dollars a year and some other person earns $100,000.00 per year, why should we both pay the same 6.20% ? $150,000 per year. That doesn’t seem fair to me. Just asking.”Because social security was not set up originally as an entitlement, it was a program that you contributed to so that you could draw from it when you retired.Since benefits were capped at a caetrin amount, so were contributions.It wasn’t designed to be “fair”, i.e. everyone doesn’t pay their share of everyone’s retirement, they pay only for their own retirement.And the rate is the same for everyone, which makes it a “flat tax” (which is good), but since the amount earnings taxed is capped at about $98,000, it is a regressive tax (which is bad). Therefore someone who makes 98,000 pays the maximum payroll tax amount, the same as Bill Gates.Over time, as more people were added as beneficiaries, and as people lived longer, there has been less and less correllation between what you put in, and what you eventually get out.Since it is no longer so much a retirement plan as an entitlement, it should be funded from general revenues and the separate (regressive) payroll tax abolished.

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