SS and Medicare Increasing Income Inequality?

As the article below explains, the answer is yes. Why would this be? Because these taxes hit low income young people and transfer the money to affluent seniors. This is all part of what we have previously described as the current “war against the young.”

We are not Republicans on this site. We find crony capitalism in all parties. But if we were Republicans, and facing an Obama campaign completely premised on attacking the rich, we would propose to keep tax rates where they are but end entitlements for rich people.

The biggest entitlement is being able to deduct jumbo home mortgages. Ending this would not be easy because the real estate industry would threaten a shut off of campaign funds. But it makes no sense to subsidize expensive homes when the government is hemorraging red ink.

While they are at it, the Republicans should end Social Security and Medicare for the wealthy. The latter would be totally opposed by the Democrats, because they fantasize that everyone should have identical healthcare, even though this isn’t even achieved in Canada or Europe, where studies show even bigger differences in healthcare for rich and poor.

Ending Medicare for the rich would also seem unfair to some  because high earners pay Medicare tax on every dollar of their income (unlike Social Security), so in some cases pay millions of dollars in Medicare taxes. On the other hand, these things are going to happen anyway. It is obvious we can’t afford entitlements for the rich. It’s just a matter of time before they are eliminated. Why don’t the Republicans, who are being charged with favoring the rich, propose them now and eviscerate President Obama’s number one campaign theme?

Click here for the story.

Hunter Lewis 11-28-2011