From Thom Hartmann:
A New America Foundation study is not calling for Social Security to be cut back but to double it. With the crash of private pensions, homeownership and personal savings in the footsteps of this Republican Great Recession, Social Security becomes central to the historic "three-legged stool" of American retirement security. Yet Social Security now only brings in only a about a third of the money needed for retirement. This study recommends doubling social security payments, and funding it by lifting the cap so millionaire banker, who right now pay a paltry 1%, pay the same 12.4% that a carpenter or firemen does. Add to that a social security tax on billionaire hedge fund managers and others who make their living through sitting on their butts, around the pool, waiting for the interest or dividend check to arrive in the mail, and you can not only double current social security payments, but the system is solvent forever.
Thom also made an interesting comment to a caller. Why not just turn it around, or reverse it? Right now, we and our employer together (each pay half) pay 12.4% of our first $106,000 of wages. Over $106,000 you pay nothing. So, most people and businesses pay all year long. What if we switched it around. Pay nothing on the first $106000 and then pay 12.4% on everything over. What a great benefit to the economy and businesses alike. Most people would get a 6.2% raise, and their employers would see a 6.2% drop in their expenses, and the wealthy would pay their fair share.
Who could argue with that?