by Karl Denninger, Market Ticker:

Well look what we have here...

A significant expansion of Social Security currently under consideration by House Democrats would extend the program’s solvency and expand benefits by raising payroll taxes on high-income earners.

If passed, the bill — the Social Security 2100 Act — introduced by Rep. John Larson, D-Conn., would make the program solvent for at least 75 years by beginning to gradually raise payroll taxes in 2020, according to the chief actuary of the Social Security Administration. Under current law, Social Security is expected to expire by 2035.

That’s a lie.  It will run out of the ability to pay 100% of benefits from tax receipts and its stack of already-owned Treasuries, but it will not “expire.”  Congress can with a single sentence bill stop that by allowing it to run a cash deficit (that is, for said deficit to impact the budget deficit directly) and make no other changes.  This sort of “reporting” is part of the big lie the political establishment runs on this topic on a literal daily basis.

Currently, all employees and employers pay a 6.2 percent payroll tax on wages capped out at $132,900 — but Larson’s bill would immediately impose a tax on wages above $400,000. He then goes a step further, proposing eventually raising that tax rate to 7.4 percent by 2043. Right now, an employee earning $50,000 per year would pay $3,100 in a payroll tax. That would climb to $3,125 in 2020 and peak at 3,700 in 2047 under Larson’s proposal.

This bill has zero chance of becoming law.

Why?

Because it would immediately and permanently de-couple Social Security and Medicare in the political scamfest screamer world.

As I have repeatedly pointed out Social Security, while it is running a cash deficit, is fixable.  Indeed, isn’t it amazing that the fixes in this bill are pretty-much inline with my article on this a few months ago?  The shift in this bill is close enough to my calculations that it’s very likely it would be completely and permanently effective in resolving the question of Social Security’s solvency.

This leaves Medicare and Medicaid, which cannot be fixed by any means other than destroying the medical monopolists.  All of them. That, in turn means accepting a deep recession or even Depression in this country as it would force the firing of all of those in that industry who never provide a single second of care to a single person; they are the means and method of the extortion forced upon all Americans in the form of differential billing and other similar schemes, all of which should have led to felony criminal indictments a long time ago.

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