The Social Security 2100: A Sacred Trust - also had another BIG, GIANT FLAW - the added benefits that it was giving, sunset after (5) years - LOL - talk about cooking the books.
Within this most recent proposal - The Social Security Expansion Act Proposal - I agree with what the SS Actuary said in their analysis concerning Sections 6 & 7:
Per the Actuary on page 7
In response to the application of the OASDI payroll tax to covered earnings above $250,000 for 2023 and later, we assume employers and employees will redistribute total employee compensation among taxes, wages, and other compensation. This behavioral response is projected to reduce somewhat both the payroll tax revenue and the scheduled benefits that would accrue in the absence of this behavioral response.
Now think about that - employers will be looking for ways to cut their losses here - so what might they do - remove employee benefits like employer health coverage, less hiring, caps on wages.
This provision alone will, IMO, drastically change employment in our society for the generations that will come afterwards.
You know I have always had the belief that if one wants more - they have to pay more. This "expansion" proposal does nothing to cure the ratio between contributions and benefits for the vast majority of the middle to lower income earners. We all know that the price of everything rises with time - so somewhere down the road, in less than 75 years, there will be another demand for MORE benefits -
I wonder how those current beneficiaries that WANT MORE would think about having to raise payroll taxes on their kids and their families to get them MORE.
I think we might come out better just making the whole system a welfare program and just put the (looking forward) contributions into the General Fund and dishing it out according to some needs-based formula. In essense, that is what these Sections (6 & 7) of the Expansion proposal is doing when it talks about selectively taxing more income levels but NOT giving any benefit - regardless of how progressive the benefits formula.
Most folks don't even understand the reasoning for the payroll cap that we currently have - IT RELATES TO THE HIGHEST BENEFIT PAID OUT.
Neither do they understand the difference in a SS benefit and SSI.
It's Always Something . . . . Roseanna Roseannadanna