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FICA tax was last raised in 1990. Look at the previous years before that and you'll see that raising FICA tax incrementally was the norm every 2-3 years.
Then it stopped in 1990 and hasn't been raised since.
UNFORTUNATELY, those that most want to "revise" SS are the very ones wanting all the illegals to get all the benefits (to include voting) the moment they arrive....
Do you also object to collecting the payroll tax from illegals?
There are already websites stating that there will be no COLA for 2016 because our illustrious leaders claim there isn't an inflation that would justify any increase on our s/s checks. They base this on the fact that gasoline prices have declined.
How nice of them. What about other increases?
Rent
Utilities
Food
Prescriptions
Health insurance premiums
...just to name a few.
There many seniors who no longer drive, and they must think we don't need money for anything else.
Our rent increases every year, our electricity provider is jacking up the rate by 12%, the gas company is soon to follow suit. Nah, we don't need any more money......just send it to Iran.
There is nothing wrong per se with advocating the elimination of the cap, as long as the advocates are willing to admit that eliminating the cap on payroll taxes collected while leaving the cap on benefits will result in a further means testing of Social Security benefits, or in other words an additional transfer of wealth from high earners to lower earners, thus providing ammunition to those who claim (mostly falsely, in my opinion) that Social Security is nothing but a welfare program.
I am guessing this topic will get moved but since SS is an important part of retired peoples' income, I thought it would be appropriate to post it here.
The politicians are all chomping at the bit to reduce social security payments. I for one am opposed as I believe many retired people depend on their check to survive. What do we need to do to prevent this from happening?
I am opposed to reducing SS too. BUT:
Those born in 1960 and after already have had their potential SS reduced by 30%. Even though the "boomers' go to 1964, they have punished the 1960 and after crowd of boomers.
I was born after 1960, but yet still a boomer, my spouse was born 1959 and will potentially get 30% more than I will, IF we had identical earnings records. {we don't}
SO, they may cut, snip, or whatever to the SS system, they are so afraid of it "running out", when all they have to do is raise the ceiling for those who are wealthier to pay a larger share, and for the whole year. And make it "income/asset sensitive." Then they can prorate those who have "means."
They should NOT reduce the benefits on any one below, say 300% or 400% over poverty or below...
I paid in, I expect to get back, and SHOULD get my "full value",and not be penalized for a certain random birth year.
But, LOOK at Greece, they have to cut their pensions, raise the age to collect it, and so forth.
When considering "what if" scenarios in the political arena, it is important to distinguish hot air expended to court a particular constituency from things which actually have a chance of passing. Cuts to Social Security payments have zero chance of passing Congress. There would be a national hue and cry to surpass all previous national upsets, as not only the people currently receiving SS would care about it, the adult children and grandchildren of those recipients would care about it too, as they would not like the idea of having to step in to make up the short-fall so that mom and dad or grandma and grandpa wouldn't have to dumpster dive for food.
This is easy to say...but SS benefits don't literally have to be CUT to save dollars and it's already been done on many fronts. For example, moving back the age of full retirement from 65 to 67. I'm actually not complaining on that because it was done gradually over many years and did not affect those who were already retired and had no time to change their saving/planning.
But, who knows what other creative ideas will be coming that have an impact but don't actually reduce the size of the check? Like increasing tax rates or how much income you can earn etc. Let's not get too cocky about "no chance in hell"!
The problem now is purely a numbers thing as over next 12 years boomers who make up 26% of population will be retiring. Number I have read is 10k per day in US. Since its a pay-go system and government uses by supposedly giving IOU what is left that becomes a big problem that goes far beyond SS payments. As Simpson/Bowles commission said it not just a funding SS problem at all. Already the natural federal cuts have meant revenue sharing programs with local and state governments have suffered cuts. to continue. Many effecting infrastructure like highways etc.
Well, if that is the case, I will ignore his/her claim, too.
Tell you what, I browsed around looking for some info on this and didn't find anything right away.
If I missed your sourcing the impact earlier forgive me but how about if you (or anyone else) links me to something legitimate that shows just how much impact removing the wage cap would be?
What I'm hearing is that one party is estimating that it would solve 1/12 of the "problem" while you are stating something closer to 1.
Perhaps you are talking about different aspects of the *problem*.
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