McArdle: “The Left Gets It Wrong on Social Security”

Bloomberg’s Megan McArdle has an interesting piece on the tensions facing progressives who wish to reform – and expand – Social Security.

Another favorite is eliminating the cap on Social Security taxes, which is a slightly less vague way of saying "the rich". Every time I discuss Social Security, at least one angry person will demand to know how I can so disingenuously claim the system is in need of reform, when "all we need to do is get rid of the cap on the payroll tax." All? "All we need to do" implies some sort of modest, unremarkable undertaking. In fact, as the Committee for a Responsible Federal Budget points out, this amounts to a 12.4 percent surtax on all income above $118,500. That's an enormous tax hike, which would generate exactly the same pushback you'd get if you announced, well, a 12.4 percent surtax on all income above $118,500.

The whole article is worth checking out, here.