I was wondering how long it would take before people realized the ultra rich could save Social Security. Right now there is a $90,000 cap on the Social Security tax. If you make over $90,000, you are free of the 12.5% tax.

The USA Today just put out a report saying lifting the $90,000 and making all the fat cats pay the tax would help solve the financial woes with the current system.

READ IT

Now is it fair that the rich get all this burden? The USA Today article says if the tax cap was stopped, the rich would have to pay over 50% in taxes. Remember, don't knock the rich, when did a poor person give you a job.

I don't think it's really fair if they are taxed at 50%. I would however like to see an across the board flat tax for everyone based on earnings. And the end of alot of the tax shelters, offshore shenigans, and the other ventures the that are used by the rich.

I agree that is a bit unfair to make anyone pay 50% in taxes.

A tax I do favor is called a consumption tax. Basically, you get taxed on what you spend each year. The more you spend, the more you get taxed. To figure out how much you spent is rather easy. Take how much you make in one year and subtact it by how much you put into savings and investments. Then you get taxed off that figure.

You can read all about it on google. It has its problems but I like a system that rewards people who save their money.

i like a progressive tax. thats when someone has to pay a higer percent in taxes as their income level increases. that way people can pay taxes at a level that will allow them to live well as well.

I would have no problem taxing people who make over 90,000 to help save Social Security. It would be fun to watch them get knocked down a notch.

I'm with 03USMC on this. Flat tax is the most fair and it's time to get rid of the tax shelters and loopholes for the exhorbitantly wealthy.

Originally Posted by Doody

I agree that is a bit unfair to make anyone pay 50% in taxes.

A tax I do favor is called a consumption tax. Basically, you get taxed on what you spend each year. The more you spend, the more you get taxed. To figure out how much you spent is rather easy. Take how much you make in one year and subtact it by how much you put into savings and investments. Then you get taxed off that figure.

You can read all about it on google. It has its problems but I like a system that rewards people who save their money.

But then look at from another angle.

Who has the ability to save more money? The working class and middle class don't have the same ability as the upper class or the rich, and still maintain their standard of living year to year. So the same people end up winning.

Would also be a big problem with big familys as they tend to spend a more presentage then ritcher people so it would most likely hit the wrong audiance

I think I will go with 03USMC on this. If everyone paid the same on their taxes it would fix a lot of problems with the American tax system.