My point was to indicate the small impact, which was a response to Paula's hope that there could be a large impact.
In either case, I'm not crazy about the idea. The system (benefits AND taxes) is already progressive. Taking the cap off would make it more progressive, which I have nothing against in principle. Right now, however, the system is under major attack, in part BECAUSE it is progressive. Thus now is not the best time to push for more progressivity. Defense of the basic premises of the program, including its progressivity, is the priority from my standpoint.
> fairness. We need a flat tax-- on social security. Of all the
> loopholes benefitting the rich, I'd guess that the SS tax cap is the
> best incremental reform we could make on a populist revulsion/ease of
> understanding basis.
> I'd be careful about prolonging the reassessment periods for
> property taxes. When I got to Philly in 1990, there was a lengthy
> newspaper article which bemoaned the fact that since assessments hadn't
> been done in over a decade, that the parts of the city worst hit by 70s
> and 80s had assessments above current market value while gentrifying
> areas were being taxed at a fraction of current market value. I guess
This is also a problem if you defer assessment till sale, as Paula suggested--taxes get out of whack with values.
> the second half is the point, but unless assessments are neglected with
> the skill of a surgeon... you get my drift, I guess.
This was a throw-away suggestion. More interesting for the local level is the replacement of the property tax with one on the site value of land.
MBS