This is a problem with Trump's proposed Tax plan. Not been confident either side will be able to fix our looming Social Security issues in the coming years. What Would the Trump Campaign Plans Mean for Social Security? | Committee for a Responsible Federal Budget President Trump’s proposals to eliminate taxation of Social Security benefits, end taxes on tips and overtime, impose tariffs, and expand deportations would all widen Social Security’s cash deficits.
There is solution to the upcoming social security shortfall although the current crop of politicians doesn't have the will to implement the remedies which could include raising or eliminating the cap on earnings which are subject to the FICA payroll tax, raising the amount of the tax one or two percent, raising the age for full SS benefits to 70 with exceptions for individuals in physically demanding occupations and increasing legal immigration which would have the effect of significantly the increasing number of workers paying into the SS trust fund. Also proving the SS trust fund with the authority to invest a small percentage of its assets in equities could increase the return on investment.
On Social Security, aren't FICA taxes taken from gross wages on employee paystubs? Making it akin to a roth IRA or roth 401k contribution?
Agree we need to make some hard choices, and neither side is up to the task. This is why we need term limits because this is a losing issue whichever party makes the painful decision that won’t be popular with the public more likely to be voted out next election cycle. If there were term limits some people would do the right thing and make the hard choice now rather than prolong the inevitable.
Yes, FICA taxes are taken from your gross wages (up to the income cap for SS taxes). No, they are not akin to a 401k contribution.
One thing worth bearing in mind, though, IMO, is that Trump says things like this without really meaning them. This is why I'm more hesitant than some to jump on him about his wacky tariff ideas; IMO he's just babbling whatever he thinks will scare up some votes. But that aside, I agree 100% with OP.
Oh, he'll add tariffs. B/c it is easy - he doesn't need congress. I wish we'd change laws, so that tariffs were not at the whim of BIG GOV idiots.
