First of all, Social Security is already means tested by
1) Progressive taxation of benefits.
2) Progressive reduction in benefits per dollars payed in.
however, further means testing of the have lesses is a fairness topic other than the thoughts I wanted to present in this post:
The average social security benefit is $1134/month. How many social security beneficiaries will
means test out on a progressive scale…….and of the small number of people that means test out how much will be garnished from their benefits?
How much will the sum of garnishment add up to? It is my contention that it won’t make much of a dent because the most that can be garnished from
a relatively small number of beneficiaries is maxed out at (I think the max benefit is around $2400/month) and only a portion of that
$2400 on a relatively small number of beneficiaries.
Compare that to adding a say 1% or 2% SSI flat tax on “all” income including capital gains and dividends over 105K (the limit for the
ssi regressive flat tax on wages). Since half of the income in the US is in the plus $105K/year (my estimate), the coffers for social security
would be overflowing indefinitely.
In principle, means testing those with relatively high income sounds good, but I believe the meat on the bone is the income aside from the 105K wage flat
tax (income represented by republican party), income from capital gains/dividends/interest/royalties,CEO pay etc.