Monday, November 18, 2013

Why not subject all wages to FICA, some Democrats ask

The Washington Post has an important editorial on Monday November 18, 2013, “Liberalism gone awry: Why not spend more money on poor children instead of seniors”, and online it is titled “Social Security proposals are wrongheaded”, link here
The editorial refers to a proposal by Sen. Tom Harkin (D-IA) and Rep. Linda Sanchez (D-CA) to make all wages, without limit, subject to Social Security FICA “tax” even though much of it would go way above what would support one’s own future income from Social Security.  The editorial suggests that this would be a “massive transfer of wealth from upper income Americans to the retired” and would further penalize wages at the expense of other income.  If you’re going to increase taxes, why not help poor children, it asks.  But should FICA really be viewed as a “tax” even if the Supreme Court says it is so, technically?

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