Social Security Reforms for Everyone's Good
Thursday, December 28, 2006; Page A26
Paul S. Hewitt overlooked several things in his Dec. 13 letter, "Putting Professionals in a Social Security Fix."
My husband and I were professionals earning more than $120,000 a year each until we retired this year. There are many ways to reduce taxable income through such things as pretax retirement accounts, pretax college tuition plans, and pretax health premium plans and health savings plans. There are also tax advantages to paying college tuition with home-equity loans. I don't feel sorry for any professionals not educated enough to know this. They need to read more.
Of course I grumble about high taxes, but for several years I expected the Social Security cap to rise above $90,000 and considered it a gift when it didn't. Employers are more likely to lobby against the change than employees. But employers have gotten a number of tax breaks in the past few years and have ways to mitigate the expense.
New legislation may also increase Medicare Part B costs for retired couples with joint earnings of more than $160,000. I think this is fair, too. If one has been blessed with good health, a good education, a good job and life in a country where advanced communication systems, transportation systems and other technologies foster business, one needs to think about society's needs and not be self-centered.
SHARI E. POLLARD
Laurel
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Paul S. Hewitt made a valid argument. I propose that we look at reducing the payroll tax rate and raising the cap at the same time. If done carefully, this combination could provide needed funds for Social Security solvency and give an immediate boost to small businesses (which pay a matching amount mostly for employees earning less than the cap now) and to many self-employed professionals. In addition, it would provide an instant raise for low-wage earners and help put to rest some of the cries for justice surrounding that need.
These three boons could stimulate local economies while at the same time providing some insulation against outsourcing.
S. ANN ROBINSON
Leesburg
