Bernie Sanders on Social Security:
https://www.youtube.com/watch?t=47&v=FAcv7g3O_iM
The BEST Social Security Modernization Plan is better, but at least Bernie is trying.
Please read all my posts on this blog for the BEST solution.
I sent my plan to Bernie, but it likely never got past his staffers.
Lifting the cap is not a good idea. I have addressed this in an earlier post.
http://bestsocialsecuritymodplan.blogspot.com/2013/11/scrapping-cap-is-crappy-idea.html
Thursday, October 8, 2015
Thursday, February 20, 2014
Financial Transfer Tax Is A Win For Wall Street – Adopt The BEST Social Security Mod Plan
Financial Transfer Tax Is A Win For Wall Street – Adopt The
BEST Social Security Mod Plan
Transfer tax: http://www.commondreams.org/view/2014/02/19-9
Adopting a Wall Street “transfer tax” would amount to a big win
for Wall Street. Why? A better “fix” to the problem would be to adopt The BEST
Social Security Modernization Plan. The BEST Plan opts to treat all income that
is “earned” equally and to require these earnings such as short term capital
gains and rental income to pay the compulsory Social Security payroll tax or
self employment tax like other forms of earned income are required to pay. Once
these “earnings” are subject to paying the Social Security tax, they will also
be additionally taxed, for purposes of federal income taxes, at the same rate
that currently defined wages and self employment earnings are taxed, not some
currently artificial 10 or 15% total amount.
Why should earning money as a result of “working” as a
result of financial investment as opposed to physical labor or using one’s mental
capabilities or using a combination of physical and mental abilities be taxed any
differently?
These financial mode earnings are currently excluded from
paying Social Security taxes and the wage rate federal income taxes as a result
of a glitch in the Social Security Act which gives them preferential treatment.
Repealing Section 211 (a) 1, 2, and 3 of the Social Security Act will remove
the glitch.
This is not even a new tax. It would result in requiring all
Americans to pay taxes at the same progressive rates.
Compared to implementing The BEST Social Security
Modernization Plan, installing a new, artificial transaction tax on Wall Street
transactions would prevent having Social Security and Federal Income Taxes that
treat all Americans fairly and equally.
To learn more details about The BEST Social Security
Modernization Plan read all the posts starting in late November 2013 here: www.bestsocialsecuritymodplan.blogspot.com
Friday, February 7, 2014
The 1 Percent “Work” Harder? – Support For The BEST Social Security Mod Plan!
The 1 Percent “Work” Harder? – Support For The BEST Social
Security Mod Plan!
As recently reported
by the Huffington Post, http://www.huffingtonpost.com/2014/02/05/sam-zell-1-percent_n_4733196.html
Sam Zell defended recent comments by Tom Perkins and was quoted as saying, "The
1 percent work harder. The 1 percent are much bigger factors in all forms of
our society."
In addition to proposing a three tier Social Security
payroll tax rate, one of the basic tenets of the BEST Social Security
Modernization Plan is eliminating the loophole found in Section
211 (a) 1, 2, & 3 of the Social Security Act which excepts rental income,
dividends and capital gains from paying the otherwise compulsory Social Security
payroll and self employment taxes.
So what did Mr. Zell
say? He said the 1 percent “work,”
and they “work harder.”
Certainly one can also make the case that many if not most
of the 99 percent work very, equally hard, but I certainly agree that the 1
percent “work.”
Some workers work using their physical skills. Others work
using their mental abilities. Others work using a combination of physical and
mental skills. However, the 1 percent’s preferred mode of work is using their
wealth to work and this work should be subject to paying the 6.2%/12.4% Social
Security payroll/self-employment taxes and that once, this form of “Zell
defined work” is defined as work, as wages, as self-employment income, this
income should be subject to paying federal income taxes at the same tax rates
that every working man pays their income taxes.
Thank you, Mr. Zell for justifying and buying into the BEST
Social Security Modernization Plan.
Now, if we can only get Congress and President Obama to see
the light and support the BEST Mod Plan.
It’s a no brainer! Or is that is the etiology of the
problematic resistance?
Thursday, January 23, 2014
Another Archival Summary of the BEST Social Security Mod Plan
Another Archival Summary of the BEST Social Security Mod Plan
For more details on the plan, please read my earlier posts!
Historical Background
Since
Social Security’s inception in 1935, many changes have been made to the
program. Some examples are adding disability benefits, the Supplemental
Security Income program, Medicare, and mandating coverage for the self-employed
and employees of non-profit organizations.
What It Does
·
Improves
long range solvency of the Social Security Trust Funds.
·
Adds
progressivity to Social Security taxation.
·
Welcomes
new groups of workers into the Social Security program.
·
Serves
to stabilize the economy.
·
Slows
the inflation of real estate values.
·
Inspires
new confidence in the Social Security program.
What It Does Not Do
·
It
does not remove the Social Security wage/coverage cap.
·
It
does not increase the retirement age.
·
It
does not reduce the amount of retirement benefits.
How Does It Do It?
·
Lowers
the payroll tax rate for workers/self-employed who earn at or below minimum
wage levels from 7.65%-15.3% respectively to 4.65%-9.3%.
·
Increases
the payroll tax for that portion of earnings which exceed the curent maximum
covered base from 7.65%-15.3% to 9.65%-17.3%, using current methodology for cap
increases, over a 10 year rolling period.
·
Adds
three new categories of work which will be subject to Social Security coverage:
Short term capital gains, all rentals from real estate, and working for state
& local employers currently not covered by Social Security for the first
five years of employment.
Who Does It Affect?
·
Having
an equitable, progressive, solvent Social Security program affects everyone.
·
Those
who work in real estate rentals and in the businesses of short term investing,
and currently non-covered state and local employers and employees.
·
Higher
wage earners who earn in excess of the current Social Security maximum.
·
Minimum
wage earners, young workers starting to work, and retired part-time workers.
·
Start-up
businesses whose profits are at minimum wage levels.
Friday, January 10, 2014
The Minimum Wage & The BEST Social Security Modernization Plan
The Minimum Wage & The BEST Social Security
Modernization Plan
Should the minimum wage be raised? H*ll. Y*s! Saying that minimum
wages should be kept inhumanly low because minimum wage jobs should be stepping
jobs to higher ($.25 an hour more?) paying jobs is ridiculous.
Any job that exists is worth doing well, and it should be
capable of instilling pride in doing it right and in the job for its workers.
Here is an example: On my monthly wild spending spree, I go
to Taco Bell ™ and order the usual Fresco bean burrito and a Fresco chicken
soft taco. What’s different today? It tastes really good. Why? For one, the
food prep specialist (fps) gave me exactly what I ordered, and it tasted really
good, today. Why? The fps made my order exactly at Taco Bell ™ intended, (I did
not get someone else’s order, either!) no sour cream, no heavy cheese, and
included the diced tomatoes and cilantro, etc.
On my way home, the grocery sack boy (I, proudly, was one,
once!) didn’t put my loaf of bread under my six pack of Pabst ™ or next to my
bars of soap. Good job!
All workers should be held accountable, but they should also
be properly trained, and they should be motivated sufficiently to want to do a
good job. Paying just and fair wages can help motivated workers.
Companies can benefit, too, by paying higher wages. Less job
turnover and time spent training and supervising saves money. Competent
employees help businesses grow and thrive.
Every worker should be able to work any job with dignity,
provide for food clothing and shelter, and keep that job if that is what they
want to do.
The last time the minimum wage permitted someone to do that
was during the 60’s around the time of the Johnson administration.
Workers should not have to hold two or three jobs just to
get by.
How would paying a
living minimum wage (higher minimum wage) affect the BEST Social Security
Modernization Plan?
An increase of the minimum wage from its current $7.25 per
hour to $11.00 per hour would generate a 52% increase of payments into the
Social Security trust fund from minimum wage workers and employers. Admittedly,
minimum wage jobs represent a small percentage of the working force and wages
and self-employment earnings, but there is no one thing, alone, which will make
Social Security fully solvent and capable of expansion.
Every little bit
helps! So, go for it!
Here is a Bureau of
Labor Statistics table that shows the percentage of minimum wage workers by
state:
|
Table 1. Employed
wage and salary workers paid hourly rates with earnings at or below the
prevailing Federal minimum wage by State, 2012 annual averages
|
||||||||||||
|
State
|
Number of workers (in thousands)
|
Percent distribution
|
Percent of workers paid hourly
rates
|
|||||||||
|
Total
paid hourly rates |
At or below minimum wage
|
Total
paid hourly rates |
At or below minimum wage
|
At or below minimum wage
|
||||||||
|
Total(1)
|
At
minimum wage |
Below
minimum wage |
Total(1)
|
At
minimum wage |
Below
minimum wage |
Total
(1) |
At
minimum wage |
Below
minimum wage |
||||
|
Total, 16 years
& up
|
75,276
|
3,550
|
1,566
|
1,984
|
100.0
|
100.0
|
100.0
|
100.0
|
4.7
|
2.1
|
2.6
|
|
|
|
1,083
|
65
|
31
|
34
|
1.4
|
1.8
|
2.0
|
1.7
|
6.0
|
2.9
|
3.1
|
|
|
|
194
|
2
|
1
|
1
|
0.3
|
0.1
|
0.1
|
0.1
|
1.0
|
0.5
|
0.5
|
|
|
|
1,472
|
68
|
17
|
51
|
2.0
|
1.9
|
1.1
|
2.6
|
4.6
|
1.2
|
3.5
|
|
|
|
725
|
50
|
33
|
17
|
1.0
|
1.4
|
2.1
|
0.9
|
6.9
|
4.6
|
2.3
|
|
|
|
8,805
|
127
|
45
|
82
|
11.7
|
3.6
|
2.9
|
4.1
|
1.4
|
0.5
|
0.9
|
|
|
|
1,234
|
42
|
7
|
35
|
1.6
|
1.2
|
0.4
|
1.8
|
3.4
|
0.6
|
2.8
|
|
|
|
853
|
23
|
2
|
21
|
1.1
|
0.6
|
0.1
|
1.1
|
2.7
|
0.2
|
2.5
|
|
|
|
219
|
11
|
4
|
7
|
0.3
|
0.3
|
0.3
|
0.4
|
5.0
|
1.8
|
3.2
|
|
|
|
103
|
5
|
1
|
4
|
0.1
|
0.1
|
0.1
|
0.2
|
4.9
|
1.0
|
3.9
|
|
|
|
4,164
|
214
|
49
|
165
|
5.5
|
6.0
|
3.1
|
8.3
|
5.1
|
1.2
|
4.0
|
|
|
|
2,114
|
136
|
60
|
76
|
2.8
|
3.8
|
3.8
|
3.8
|
6.4
|
2.8
|
3.6
|
|
|
|
331
|
14
|
7
|
7
|
0.4
|
0.4
|
0.4
|
0.4
|
4.2
|
2.1
|
2.1
|
|
|
|
404
|
31
|
16
|
15
|
0.5
|
0.9
|
1.0
|
0.8
|
7.7
|
4.0
|
3.7
|
|
|
|
3,065
|
85
|
21
|
64
|
4.1
|
2.4
|
1.3
|
3.2
|
2.8
|
0.7
|
2.1
|
|
|
|
1,785
|
93
|
50
|
43
|
2.4
|
2.6
|
3.2
|
2.2
|
5.2
|
2.8
|
2.4
|
|
|
|
920
|
46
|
25
|
21
|
1.2
|
1.3
|
1.6
|
1.1
|
5.0
|
2.7
|
2.3
|
|
|
|
780
|
44
|
29
|
15
|
1.0
|
1.2
|
1.9
|
0.8
|
5.6
|
3.7
|
1.9
|
|
|
|
1,147
|
60
|
30
|
30
|
1.5
|
1.7
|
1.9
|
1.5
|
5.2
|
2.6
|
2.6
|
|
|
|
1,043
|
74
|
35
|
39
|
1.4
|
2.1
|
2.2
|
2.0
|
7.1
|
3.4
|
3.7
|
|
|
|
378
|
11
|
3
|
8
|
0.5
|
0.3
|
0.2
|
0.4
|
2.9
|
0.8
|
2.1
|
|
|
|
1,327
|
67
|
25
|
42
|
1.8
|
1.9
|
1.6
|
2.1
|
5.0
|
1.9
|
3.2
|
|
|
|
1,567
|
62
|
17
|
45
|
2.1
|
1.7
|
1.1
|
2.3
|
4.0
|
1.1
|
2.9
|
|
|
|
2,449
|
90
|
19
|
71
|
3.3
|
2.5
|
1.2
|
3.6
|
3.7
|
0.8
|
2.9
|
|
|
|
1,522
|
60
|
35
|
25
|
2.0
|
1.7
|
2.2
|
1.3
|
3.9
|
2.3
|
1.6
|
|
|
|
700
|
45
|
21
|
24
|
0.9
|
1.3
|
1.3
|
1.2
|
6.4
|
3.0
|
3.4
|
|
|
|
1,538
|
97
|
49
|
48
|
2.0
|
2.7
|
3.1
|
2.4
|
6.3
|
3.2
|
3.1
|
|
|
|
274
|
4
|
1
|
3
|
0.4
|
0.1
|
0.1
|
0.2
|
1.5
|
0.4
|
1.1
|
|
|
|
561
|
32
|
17
|
15
|
0.7
|
0.9
|
1.1
|
0.8
|
5.7
|
3.0
|
2.7
|
|
|
|
730
|
23
|
9
|
14
|
1.0
|
0.6
|
0.6
|
0.7
|
3.2
|
1.2
|
1.9
|
|
|
|
370
|
13
|
5
|
8
|
0.5
|
0.4
|
0.3
|
0.4
|
3.5
|
1.4
|
2.2
|
|
|
|
1,777
|
103
|
49
|
54
|
2.4
|
2.9
|
3.1
|
2.7
|
5.8
|
2.8
|
3.0
|
|
|
|
488
|
23
|
6
|
17
|
0.6
|
0.6
|
0.4
|
0.9
|
4.7
|
1.2
|
3.5
|
|
|
|
4,075
|
224
|
113
|
111
|
5.4
|
6.3
|
7.2
|
5.6
|
5.5
|
2.8
|
2.7
|
|
|
|
2,206
|
137
|
74
|
63
|
2.9
|
3.9
|
4.7
|
3.2
|
6.2
|
3.4
|
2.9
|
|
|
|
205
|
7
|
3
|
4
|
0.3
|
0.2
|
0.2
|
0.2
|
3.4
|
1.5
|
2.0
|
|
|
|
3,277
|
147
|
31
|
116
|
4.4
|
4.1
|
2.0
|
5.8
|
4.5
|
0.9
|
3.5
|
|
|
|
890
|
64
|
29
|
35
|
1.2
|
1.8
|
1.9
|
1.8
|
7.2
|
3.3
|
3.9
|
|
|
|
982
|
11
|
3
|
8
|
1.3
|
0.3
|
0.2
|
0.4
|
1.1
|
0.3
|
0.8
|
|
|
|
3,450
|
195
|
87
|
108
|
4.6
|
5.5
|
5.6
|
5.4
|
5.7
|
2.5
|
3.1
|
|
|
|
298
|
10
|
2
|
8
|
0.4
|
0.3
|
0.1
|
0.4
|
3.4
|
0.7
|
2.7
|
|
|
|
1,084
|
59
|
28
|
31
|
1.4
|
1.7
|
1.8
|
1.6
|
5.4
|
2.6
|
2.9
|
|
|
|
253
|
12
|
6
|
6
|
0.3
|
0.3
|
0.4
|
0.3
|
4.7
|
2.4
|
2.4
|
|
|
|
1,554
|
86
|
46
|
40
|
2.1
|
2.4
|
2.9
|
2.0
|
5.5
|
3.0
|
2.6
|
|
|
|
6,060
|
452
|
282
|
170
|
8.1
|
12.7
|
18.0
|
8.6
|
7.5
|
4.7
|
2.8
|
|
|
|
758
|
37
|
21
|
16
|
1.0
|
1.0
|
1.3
|
0.8
|
4.9
|
2.8
|
2.1
|
|
|
|
184
|
5
|
1
|
4
|
0.2
|
0.1
|
0.1
|
0.2
|
2.7
|
0.5
|
2.2
|
|
|
|
1,803
|
123
|
48
|
75
|
2.4
|
3.5
|
3.1
|
3.8
|
6.8
|
2.7
|
4.2
|
|
|
|
1,705
|
29
|
11
|
18
|
2.3
|
0.8
|
0.7
|
0.9
|
1.7
|
0.6
|
1.1
|
|
|
|
453
|
26
|
13
|
13
|
0.6
|
0.7
|
0.8
|
0.7
|
5.7
|
2.9
|
2.9
|
|
|
|
1,745
|
94
|
41
|
53
|
2.3
|
2.6
|
2.6
|
2.7
|
5.4
|
2.3
|
3.0
|
|
|
|
173
|
9
|
4
|
5
|
0.2
|
0.3
|
0.3
|
0.3
|
5.2
|
2.3
|
2.9
|
|
|
NOTE:
Data exclude all self-employed persons whether or not their businesses are
incorporated. Users are reminded that these data are based on a sample and
therefore are subject to sampling error; the degree of error may be quite
large for less populous States. It is not possible to determine clearly
whether workers surveyed in the CPS are actually covered by the Fair Labor
Standards Act (FLSA) or by individual State minimum wage laws. Thus, some
workers reported as earning the prevailing Federal minimum wage may not in
fact be covered by Federal or State minimum wage laws. Also, there are a
number of States that have minimum wages that exceed the Federal minimum
wage. At the same time, the presence of a sizable number of workers with
wages below the prevailing Federal minimum wage does not necessarily indicate
violations of the FLSA or applicable State laws, because there are numerous
exclusions and exemptions to these minimum wage statutes. Hourly earnings do
not include overtime pay, commissions, or tips.
|
||||||||||||
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