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There may have been a time when the $106,000 cap on Social Security made sense, but today it does not. That time would have been before Congress stole the money from the trust fund. That time would have been when wealth was more evenly distributed between the working class and the ruling class. That time would have been when the economy was in better shape than it is now. Capping the Social Security tax amounts to a tax break for the rich at a time when neither the program nor the country can afford it. Does it make sense to have to borrow money for benefits beginning in 2017 when the rich are not paying tax on their total income? It is time to end tax breaks for the wealthy and start doing what makes sense.
Jimhcom, sorry I'm still young and not at majority age yet so there's
many things I'm still learning.
Are you saying that if a person makes over 106k their social security
taxes do not increase?
So if someone made 400k they pay the same social security tax as
someone that made 106k?
If so I better take a closer look at my paycheck (I'm a student) just to
check what percentage of total wage goes to social security oppose to
fed/state ... I do remember noticing that medicare was hardly anything...
Ok, well then be fair. If you do this, then also remove the CAP people receive on benefits.
Even then, this is a TERRIBLE idea. I am already forced to waste 15% of the first $106k I make investing in a soon to be bankrupt retirement program that returns its investors around 2% per year. Now you want to make me waste 15% of ALL the money I make?? No thanks pal. I will stick with the 10-18% I can get in the market.
There may have been a time when the $106,000 cap on Social Security made sense, but today it does not. That time would have been before Congress stole the money from the trust fund. That time would have been when wealth was more evenly distributed between the working class and the ruling class. That time would have been when the economy was in better shape than it is now. Capping the Social Security tax amounts to a tax break for the rich at a time when neither the program nor the country can afford it. Does it make sense to have to borrow money for benefits beginning in 2017 when the rich are not paying tax on their total income? It is time to end tax breaks for the wealthy and start doing what makes sense.
ok, if you remove it, are you going to up the amont those people receive when the retire? I don't think so. Right now thesse people get the same amont at 65 or whatever age someone making far less gets. Why should they pay more so you can be secure and they should not get more?
There may have been a time when the $106,000 cap on Social Security made sense, but today it does not. That time would have been before Congress stole the money from the trust fund. That time would have been when wealth was more evenly distributed between the working class and the ruling class. That time would have been when the economy was in better shape than it is now. Capping the Social Security tax amounts to a tax break for the rich at a time when neither the program nor the country can afford it. Does it make sense to have to borrow money for benefits beginning in 2017 when the rich are not paying tax on their total income? It is time to end tax breaks for the wealthy and start doing what makes sense.
This information is precisely why everyone should have to take and pass a test of basic financial concepts before they can vote.
The limit increases every year. In many years it has increased at a rate higher than inflation. Benefits are capped to the limit, at least in theory. Raise the limit, raise the maximum benefits. Today high income workers subsidize low income workers. Lower income workers recieve a higher rate of return on their social security "portfolio" than high income workers. It is pure wealth redistribution. Now you want more.
For the record, anything other than the annual increase would be a tax increase. Obama has already promised not to raise taxes.
You know, if you gave people the opportunity, a few would opt out of paying for fire and police protection, thinking that they could do better on their own.
But we as a society don't want that situation. So, we tax people and provide those services to everybody.
Same with SS. It's a safety net - not an investment plan. So we tax everybody and provide a safety net.
All the complaining about "taking my money" and "I can do better in the market" is just plain nonsense.
Don't listen to them. Lift the cap and tax the wealthy more (I'm in that category).
This information is precisely why everyone should have to take and pass a test of basic financial concepts before they can vote.
The limit increases every year. In many years it has increased at a rate higher than inflation. Benefits are capped to the limit, at least in theory. Raise the limit, raise the maximum benefits. Today high income workers subsidize low income workers. Lower income workers recieve a higher rate of return on their social security "portfolio" than high income workers. It is pure wealth redistribution. Now you want more.
For the record, anything other than the annual increase would be a tax increase. Obama has already promised not to raise taxes.
I don't care if the increase has outpaced inflation. So have the earnings of the wealthy. The cap should be eliminated.
And Obama promised not to raise taxes on people earning less that $250k. Removing the cap would violate that promise, too, but I'd forgive him because it makes more sense.
That time would have been before Congress stole the money from the trust fund.
Congress never stole anything. The Social Security Administration has invested its (temporary) surpluses held in the SS Trust Fund in US Treasury securities until the time comes when they need those funds to help cover the blip caused by Baby Boomer retirements. Anticipation of those retirements is the only reason that there are significant balances in the Trust Fund to begin with.
Meanwhile, the proceeds of all sales of US Government securities are deposited to the Treasury General Fund for appropriation to government purposes. If this is stealing, then so are building and refurbishing schools with the proceeds of school bond sales, and investing in new plant and equipment with the proceeeds of corporate bond sales.
Are you saying that if a person makes over 106k their social security taxes do not increase? So if someone made 400k they pay the same social security tax as someone that made 106k?
Yes, that is what he is saying. No Social Security tax is paid on covered wages etc. that are above the annual cap. There is no cap for Medicare taxes. Those are paid on all covered wages etc. without limit.
Ok, well then be fair. If you do this, then also remove the CAP people receive on benefits.
What cap exists that does not itself depend on the existence of the Wage Cap?
Quote:
Originally Posted by jdevelop2
Even then, this is a TERRIBLE idea. I am already forced to waste 15% of the first $106k I make investing in a soon to be bankrupt retirement program...
SS is not soon to be bankrupt. In the technical sense in fact, it can never be bankrupt, since it has no creditors. It is also not soon to be insolvent, nor is the Trust Fund soon to be exhausted, although it is designed to be eventually exhausted.
Quote:
Originally Posted by jdevelop2
...that returns its investors around 2% per year.
That should be 2% per year above the rate of inflation, and the actual ROI that people receive depends upon their employment circumstances and histories. That ROI also excludes the value of automatic SS disability insurance coverage and automatic SS life insurance coverage, as well as the fact that SS retirement annuities are true whole-life annuities that one cannot outlive and that are adjusted for cost-of-living increases annually.
Quote:
Originally Posted by jdevelop2
Now you want to make me waste 15% of ALL the money I make?? No thanks pal. I will stick with the 10-18% I can get in the market.
The two things that American males lie about most frequently are how good they are in the sack, and what savvy investors they are. The typical investor will have to depend upon luck to do better than he would under SS.
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