Re: Regressive Taxation
Go a step further and let the farmers pay back what they have gotten in ag subsidies in exchange for keeping their farms. The day is going to come when that won't even be an option, but it could work right now. Lots of farms would go back to the government since I doubt that many would be able to come up with the millions to pay off their tax liens. Maybe have an installment payment option. That would defuse the $10,000 per acre land auctions faster than $2.50 corn, if the land came with a $3000 per acre government subsidy lien.
And then clawback the millions of 1980's debt relief, and also the farms that got transferred or placed in trust so someone else could pay the nursing home bills.
I would rather do that now, and have my farms stay privately owned than to face the USA of South Africa scenario. Especially if we get an offset for the taxes we paid. Plus , better give the farmers some type of credit for the lower prices they took all the years because of government intervention in the markets.
See how complicated this all gets? What a tangled web has been woven.
the older the recipient, the better the deal as the rates have gone up for the current generation to fund the benefits the older generations, in most cases, never paid for.
Re: not exactly
SS tax rates have not been increased since Reagan the great did it in 1982. SS still has $2 trillion in the trust fund. Raising the rates is not likely but raising the taxable amount is. But then the R's prefer a flat tax so they say.
Re: not exactly
Newsflash, the maximum amount paid to SS has gone up every year. Also, there is not a limit to the amount of income subject to the 2.9% medicare tax, and Obamacare ushered in a whole new plethora of taxes , too, including a tax on unearned income once you and the missus make $250,000.
Re: OK I will correct you
The rates have not gone up since 1983 and the Reagan save SS bill. Your ss tax is the same percentage as it was when Reagan signed the bill. The difference is that there is more income is subject to the tax but the tax rate is the same.
Secondly, the taxes do not fund current retirees. There is a 2 trillion dollar surplus that will fund the current benefits for many years.The purpose of the Reagan SS bil was to extend benefits out into the future. Not current recipients. They are striving to make benefits available to younger whipper snappers like you.And they are not overtaxing you when you factor in inflation. Or do you only want to consider that when you figure capital gains. In other words your SS tax PAYMENTS HAVEN'T KEP UP WITH INFLATION.
Now what part of that don't you understand?