wrote:
On Wed, 13 May 2009 12:36:10 -0400, HK wrote:

The medicare tax is not capped. The SS tax cap goes up every year

I stand partially corrected. Remove the SS cap. Apply the taxes against
ALL income. Better?

The reason I have heard that they want to make SS a capped tax on
wages is it is supposed to be some kind of pension type thing and not
just welfare but I guess that is ridiculous so I might be willing to
agree with your proposal. The problem is the SS tax would be bigger
than the income tax for guys like Gates and Buffett (either Buffett)

If you think you can pass it, go for it.

As for medicare, it shows the problem with government insurance. It
collects 3% of every dollar of wages earned in this country and is
going broke paying 80% of the medical bills for about 16% of the
population. If you expanded that to 100% of the population and 100% of
the bills, what would the tax rate have to be?
I know IBM says they spend $2000 a year on my insurance and I still
have to pay over $800 a month if I want reasonable coverage

When created the social security system was an old age insurance system
that would provide a pension after the age of 65. In fact it was called
social security insurance. Check your facts.

http://www.socialsecurity.gov/history/fdrbill.html

Quote-- FDR had proposed a three-part program of old-age security
consisting of: old-age welfare pensions; compulsory contributory social
insurance (what we now think of as Social Security) --Quote

In the 60 or 70's The democrats dumped the social security money into
the general fund and spent it. Now they are must provide the funds back
to social security that was taken for other programs. They then
expanded the system to provide pensions to people who did not contribute
to the system.

What is spending another couple of trillion dollars to a democrats. The
are already spending nearly two dollars for every dollar they take in.
And with their proposed health care reform will increase that to four
dollars for every dollar they take in.