To: President Donald Trump and The United States House of Representatives
FIX Social Security!!!
Stop corporate tax dodging on Social Security contributions and end the incentive for corporations to increase income disparity by giving more income to higher earners thus reducing social security employer contributions and increasing income disparity thereby harming our economy as it reduces middle class income we depend on to keep the economy operating well. We should float Social Security's upper cap to at least 90% of the payroll on a yearly basis.
Why is this important?
Since Greenspan realigned Social Security in 1983, some major changes have been made by corporations to reduce their tax burden... and it includes creating income disparity as high as before the Great Depression. Greenspan set the contribution max level to hit 90% of income to employees with an increasing cap that is now $110K. But corporations began limiting salary increases to line employees and giving the boosts to those making MORE than the cap... so they no longer had to match the tax outlay but were not cutting total payroll, so it did not appear to be a down sized work force... but in fact, their pay was downsized to the point that they didn't keep up with inflation... moreover, the corporations didn't have to pay as much for Social Security contributions.
So how do we fix it?
We adjust the cap yearly so that it represents 90% of the payroll income in the US. That means more will be paid by corporations and there will be no more tax reasons to pile on disparate income levels at the upper echelons of the company. It MIGHT revise the way companies pay their people... Because it was in mid 1990s that Harvard put out a study that recommended that corporate salaries and perquisites be analyzed by the board of directors and that they should decide how much the top management should get and how to structure their performance bonuses... Problem is that many boards made the $ decision, but left out the performance requirements so we see corporate management taking home millions every year and even in bad years they get to take home far too much of the corporate bankroll. This is a decision that needs to be affected by instituting a tax on corporations equal to the difference between change in profit and the change in corporate management salaries. A negative change to profit should create a larger tax if they don't reduce the management salaries. IT CAN BE ARRANGED so that we no longer have to watch disparate income levels create millionaires of incompetent or so..so management. And that means we no longer have to worry as much about not having middle income oomph to keep our sales high enough that the economy continues to grow instead of falling... and taking down our ability to pay the debt now at $16Trillion dollars. It is merely an incentive to keep the economy running well rather than faltering for lack of middle class income to buy our products.
So how do we fix it?
We adjust the cap yearly so that it represents 90% of the payroll income in the US. That means more will be paid by corporations and there will be no more tax reasons to pile on disparate income levels at the upper echelons of the company. It MIGHT revise the way companies pay their people... Because it was in mid 1990s that Harvard put out a study that recommended that corporate salaries and perquisites be analyzed by the board of directors and that they should decide how much the top management should get and how to structure their performance bonuses... Problem is that many boards made the $ decision, but left out the performance requirements so we see corporate management taking home millions every year and even in bad years they get to take home far too much of the corporate bankroll. This is a decision that needs to be affected by instituting a tax on corporations equal to the difference between change in profit and the change in corporate management salaries. A negative change to profit should create a larger tax if they don't reduce the management salaries. IT CAN BE ARRANGED so that we no longer have to watch disparate income levels create millionaires of incompetent or so..so management. And that means we no longer have to worry as much about not having middle income oomph to keep our sales high enough that the economy continues to grow instead of falling... and taking down our ability to pay the debt now at $16Trillion dollars. It is merely an incentive to keep the economy running well rather than faltering for lack of middle class income to buy our products.