Gary Owens – 1/5/05

This page was last updated on January 5, 2005.

Two notes is all it takes; Gary Owens; Beaver County Times; January 5, 2005.

Below is a detailed critique of the subject letter.

“Remember the game show years ago, ‘Name That Tune’?

“I can name that tune in two notes, or I can name that tune in three notes.

“Well, I can solve the Social Security problem in two notes: ‘No cap.’”

[RWC] Since Mr. Owens was not explicit, I’ll go out on a limb and assume he meant there should be no limit on how much of your wages is taxed for Socialist Security. For 2005, the limit is $90,000. That is, wages above $90,000 are not subject to the Socialist Security tax.

I hate to burst Mr. Owens bubble, but his proposal is the equivalent of a tax increase and it won’t work. Throughout its history, the SS tax rate has increased from 2% to 12.4% and the maximum amount of taxed earnings has increased from $3,000 to $90,000. If that doesn’t convince you Socialist Security as it stands is a Ponzi scheme, nothing will.

One last point. Medicare has no earnings “cap” and it too is in trouble.