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Research Proposal Thesis, Major Points, and Plan

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Should the U.S. Tax Social Security income ceilings for contributions be raised?

The reason for choosing this topic is one; to analyze if at all the tax rate should go up and why, the second reason is to understand how tax raise will affect the citizens. Taxes are used as a medium for collecting money by the government and it is crucial for us to find out if the money that is taxed is used wisely and in doing what?

The characteristics of the audience in this topic are; the government, who are in control of how the tax money is used in the state. The citizens who are the ones that give the tax and benefit from programs carried out by the government. However, despite the citizens being taxed, they are not in a position to determine how the money is utilized by the government.

The citizens of United States are ready to raise taxes so as to retain social security covers. The Democrats that are willing to do so are 65% and 53% of Independents and 38% of Republicans. The life cover of Social Security could be extended for the next 75 years when there is a raise in the cap of taxation payroll which at this time limits the contributions to $110,100.

In 2011 the social security cover for the employee was reduced to 4.2% and the employer portion remained un-deterred. There was no money that was collected for Medicare. Consumer Price Index for Urban Wage Earners is a contributor on the social security tax ceiling. Once there is no enhancement in CPI-W, the cost of living is not adjusted and there is no increase in the input base.

The structure of both Social Security and Medicare caters for the retired employees. The government reviews the funds of an individual be it their income or assets. This causes other resources to surpass the stipulated level which leads the government to deduct on the individual’s payment.

References

Altmeyer, Arthur J. 1949. Statement by Arthur J. Altmeyer, Commissioner for Social Security

Administration on Recommendations to Improve the Old-Age and Survivors Insurance Provisions

Of the Social Security Act.

Ball, Robert M. 1973. "Social Security Amendments of 1972: Summary and Legislative History." Social

Security Bulletin 36(3): 3–25.

http://andrewgbiggs.blogspot.com/2009/06/why-we-shouldnt-increase-social.html.

Report before the Ways and Means Committee of the House of Representatives. Available in the

"Downey Books" Legislative History of 1950, Volume 4.

Snee, John, and Mary Ross. 1978. "Social Security Amendments of 1977: Legislative History and

Summary of Provisions." Social Security Bulletin 41(3): 3–20.

Wade, Alice H., J. Patrick Skirvin, and William M. Piet. 2005. Computing the Ratio of Social Security

Taxable Earnings to Covered Earnings; Implications for Provisions to Raise the Contribution and

Benefit Base. Memorandum to Stephen C. Goss. Baltimore, MD: SSA, Office of the Chief Actuary.

Woolley, John T., and Gerhard Peters. 2011. "Social Security Amendments of 1977 Statement on Signing

S. 305 into Law." Santa Barbara, CA: The American Presidency Project.