SS is an easier fix. Raise the income cap and you can soften by making the applicable % incremental as you go up.
Why are you against raising the retirement age? That seems like a good start to help fortify SS for the long-term.
First it’s not a huge tax increase if done incrementally as you go up. There are several ways to do this. Also the tax would be applicable on employers as well. There are certain ways you can mitigate this so as not to hurt small businesses. This would help keep the increase lower. It’s really simple math. We already have a system where certain income levels won’t ever see the total they paid in. I don’t think someone making $250,000 is going to miss increments of a % especially if you give them a raise in the amount they can contribute to a tax deferred retirement vehicle.
1) I strongly disagree with you about it not being a huge tax increase. People have been getting a tax increase on FICA nearly every year over last 25 years. The proposals I’ve seen are huge tax increases.
Please elaborate on how the fica tax has increased
Just for your information Biden promised no one making $400K and below would see a tax increase. My wife and I retired with 70 years of service to public education. Firemen and policemen are twenty years and out. Just how much longer should a non woke teacher work before they can retire and collect the social security they’ve paid into for forty plus years? We got by until we were eligible for SS and it helps greatly, and it’s our money we paid in. What’s your perfect retirement age ? What do you consider to be rich? You do realize the rich used to be taxed at 90% and there were still billionaires.
Sorry. Assumed you were aware. The FICA tax maximum has increased every year since 2016. And 21 of last 24 years.
So the tax wasn’t raised it was only applied to a higher income. And while a person makumg 50000 has an effective SS tax rate of 6.2 a person making 200,000 has an effective tax rate of 5.2.
That is why I specifically said the FICA "income cap has been raised every year". It is a higher tax payment every year -- no two ways about that.
The person making $200K is paying much more in FICA. And if cap limits are significantly raised or eliminated...the payment will be MUCH more. And no, you are incorrect ...the "probability is higher on the person making 50K" to not get back what they paid. You may not be aware of this...but there is a monthly cap on the amount of SS benefits. It is currently less than $5K. There is no way a higher income individual gets a return with SS. (note: I am not against that. I want SS to continue and I want politicians to bolster it. But further increasing tax burdens on tax payers should not be only solution.
I want funds for SS. I've paid into the system for years. I've known for a long-time it is not a good return on my personal investment, but I understand and want SS to help be a lifeline for our seniors and disabled to live. That said, some of the proposals to eliminate, or drastically increase, income caps are not fair, IMO.
Where do you want money pulled from, what should get less funding? Just curious
So you advocate for a regressive income tax?
Is that raise tired to inflation? If it doesn't raise every year it is effectively dropped.
FICA income cap? Yes, reason why the cap has increased 15% over last two years.
I didn't say that. I think you might be conflating income tax and SS taxes.
Seriously???? Thanks for “JTSplaining” that.
Who said anything about eliminating SS payments?? I want SS to continue and want serious discussion on debt.
What portion of gov spending needs to be cut? What programs get chopped?
Government spending growth has been out of control. As I mentioned earlier, if we could have frozen spending levels of just 4 years ago, we would have had a budget surplus this fiscal year. Slowing rate of spending growth has to occur.
