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MH1

(18,555 posts)
2. Yay!! "advocated raising the cap on earnings subject to [FICA] taxes"
Sat Jul 25, 2015, 10:45 AM
Jul 2015

That is a critical component to improving the long-term health of the Social Security program.

It's flippin' obvious of course but lots of people don't want to mention it.

(Taken by itself) it would raise some folks' taxes (mine included) but it's the right thing to do. Ideally the effect on mid-income "high earners" could be offset by tweaks to the federal income tax, to avoid increasing the overall tax burden at the top end of the income subject to FICA. Because, these incomes are NOT the incomes of "the 1%". The incomes of the 1% is where the overall tax rate needs to be raised more significantly, but the top of FICA range is still where supporting a family of 4 or more does involve making choices and limitations, i.e. it isn't "filthy rich" and won't necessarily afford top-tier schooling for the kids or anything like that. Sure most people who can't even dream of passing even the current cap level don't want to hear that. But from a political strategy a candidate should keep that in mind. I like that O'Malley is capable of that level of nuanced thinking. All that said, I personally am happy with just raising the FICA cap, and am glad to hear O'Malley say it.

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