Social Security Tax Question (Obama, how much, compared, retirement)

[MovingForward]

Why is income beyond $97,000 exempt from social security taxes?

I think we need to start talking about this, as a nation. That's a TON of tax-free income for the wealthy. Bizarre.

[MovingForward]

Some ideas:

Tax Day: You Pay Your Taxes -- Why Don't the Rich Pay Their Share? | Corporate Accountability and WorkPlace | AlterNet

[plannine]

It's not important unless you can blame Obama and those darn pesky liberal citizens of the USA.

[Chatteress]

Originally Posted by MovingForward

Why is income beyond $97,000 exempt from social security taxes?

I think we need to start talking about this, as a nation. That's a TON of tax-free income for the wealthy. Bizarre.

Are folks in this income bracket allowed to withdraw their SS benefits at retirement? If not, then they have every rights to keep their money. If they are allowed to withdraw SS benefits, then they need to pay up like everyone else.

[idahogie]

It would be an extremely easy fix to the SS shortfall.

Conservatives keep claiming that SS is failing, just as a way to try and kill it. In reality, there are several easy fixes. Increase immigration by 1%. Raise the retirement age a couple years (admittedly, this one isn't popular - even with me). Get rid of the cap. Etc.

But they don't want to hear anything except "privatize" or "kill."

[padcrasher]

Because the payout on the other end is capped. Lifetime high end earners to not recieve SS checks that are in proportion to their lifetime incomes...the amounts only go so high.

Don't get me wrong I'm for progressive tax rates, but the idea is that SS is not a "retirement" plan but a social safety net for those who didn't save enough.

Now for those incomes from zero to 97K...it is a progressive structure. Those that make 20K will recieve more benefit for the buck compared to someone who makes 90K per year.

[MovingForward]

Originally Posted by msconnie73

Are folks in this income bracket allowed to withdraw their SS benefits at retirement? If not, then they have every rights to keep their money. If they are allowed to withdraw SS benefits, then they need to pay up like everyone else.

Yes, they withdraw social security just like everybody else.

[Chatteress]

Originally Posted by padcrasher

Because the payout on the other end is capped. Lifetime high end earners to not recieve SS checks that are in proportion to their lifetime incomes...the amounts only go so high.

Don't get me wrong I'm for progressive tax rates, but the idea is that SS is not a "retirement" plan but a social safety net for those who didn't save enough.

Now for those incomes from zero to 97K...it is a progressive structure. Those that make 20K will recieve more benefit for the buck compared to someone who makes 90K per year.

Wow! This is the first post of yours that I agree with! What is this world coming to?

[wanneroo]

Gee now wait a minute the leftists have been telling me all my life that social security was not a tax but a benefit since I was too incompetent to save for my retirement.

Well I guess not. How much more of my paycheck do the leeches want? I already pay fed, state and 15% SE which covers SS and medicare, not to mention all the other nickel and diming they do to me.

[roysoldboy]

Originally Posted by padcrasher

Because the payout on the other end is capped. Lifetime high end earners to not recieve SS checks that are in proportion to their lifetime incomes...the amounts only go so high.

Don't get me wrong I'm for progressive tax rates, but the idea is that SS is not a "retirement" plan but a social safety net for those who didn't save enough.

Now for those incomes from zero to 97K...it is a progressive structure. Those that make 20K will recieve more benefit for the buck compared to someone who makes 90K per year.

I find what you said here to be every bit as good as msconnie did. What is going on? Are you getting ready to retire? I have been there for 14 years.