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There are a number of possible/probable unintended consequences from doing that. One of is the incentive it would give employers to contain/contract wage growth to minimize the amount the increased rate is applied to. Also many companies would like any other production cost pass the increase on to their consumers thus increasing the amount of cost push inflation in the economy.
Plus it would penalize all employers, even those who still extend significant benefits.
And if you are self-employed you will see higher taxes, and never had a pension plan to begin with.
Isn't that just exactly the point? In return for your higher taxes, you now have a meaningful pension. No doubt you think that you are smart enough to do this yourself (and way smarter than that), but many self-employed people don't have two nickels to rub together after they retire, aside from Social Security.
It wasn't increased; it reverted back to where it was 2 years ago.
That was a "tax holiday", not a tax change and was only supposed to be in place for 1 year.
FICA funds your future retirement. We should have been upset that it was lowered to begin with.
If anything it should be raised IMHO. With pensions gone and 401K savings lackluster, future generations are going to depended on SS as their primary retirement income, not as supplemental retirement income.
And 2% doesn't amount to much really if you do the math..$20/week for a $50K/year salary.
no, it should be cut altogether (below a certain age). The way the government is functioning, there is no way I am going to rely on them for my retirement. I'd rather have that 6% to invest in my own retirement.
no, it should be cut altogether (below a certain age). The way the government is functioning, there is no way I am going to rely on them for my retirement. I'd rather have that 6% to invest in my own retirement.
Believe it or not, life in a complex civilization is not all about you.
It wasn't increased; it reverted back to where it was 2 years ago.
That was a "tax holiday", not a tax change and was only supposed to be in place for 1 year.
FICA funds your future retirement. We should have been upset that it was lowered to begin with.
If anything it should be raised IMHO. With pensions gone and 401K savings lackluster, future generations are going to depended on SS as their primary retirement income, not as supplemental retirement income.
And 2% doesn't amount to much really if you do the math..$20/week for a $50K/year salary.
What good does increasing SS do though when the government robs from it? I've pretty much accepted the reality that there will be no SS when I retire. So I'm essentially paying a "help the old folks out" tax. Fifty bucks out of my paycheck is going to hurt for sure.
For a reality check, look at income distribution trends over the last 50 years, look at corporate profits.
GM and Chrysler filed for bankruptcy several years ago. Many steel companies did the same 30 years ago. A company cannot fund benefits with money it does not have.
What good does increasing SS do though when the government robs from it? I've pretty much accepted the reality that there will be no SS when I retire. So I'm essentially paying a "help the old folks out" tax. Fifty bucks out of my paycheck is going to hurt for sure.
Where on earth do you get this idea? Unless right-wing bonkos kill SS for political and ideological reasons, it will certainly, beyond any shadow of a doubt, be around when you retire. What you need to worry about is the cost of medical care, including (but not limited to) Medicare.
GM and Chrysler filed for bankruptcy several years ago. Many steel companies did the same 30 years ago. A company cannot fund benefits with money it does not have.
Rather than pick a few outliers that suit your purpose, look, for example, at IBM's profits, and then look at their history of screwing workers over pensions and 401K contributions. Then look at General Electric for more of the same. More generally, rather than pick a few outliers that suit your purpose, look at profits for the S&P 500 over the last 30 years, and look at the state of defined-benefit pensions, and try to figure out where the money went that used to go into pension funds.
no, it should be cut altogether (below a certain age). The way the government is functioning, there is no way I am going to rely on them for my retirement. I'd rather have that 6% to invest in my own retirement.
That 6% is your share..your employer also pays FICA tax on your behalf.
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