Maybe I'm misunderstanding. I'm saying lift the income cap on social security taxes. Right now, it's capped at nearly $170,000.
Would not do a ton. As of last year, only about 3.6 percent of people made over 168k. And most of those would come in not too far above it.
It wouldn't alone fix the problem. But it would do more than you're saying. https://www.cbo.gov/budget-options/58630 The second alternative, which would apply the 12.4 percent payroll tax to earnings over $250,000, would delay the exhaustion of the combined trust funds by 13 years, until calendar year 2046.
That was if it was implemented first of last year, if it went in in 2025 we are now two years closer to net zero without that money. Projections overall have also gotten worse. We wouldn’t get close to 2046 now. But even if it had been implemented, that’s not much more than a stop gap, it’s not a real solution as you said without several other things being done too. Which is my larger point, every year we wait, the solution gets more and more painful. But no one in congress wants to be the one to raise taxes or cut benefits, so it will take us getting to a true crisis before they act, at which point the solution will be fugly. Because our “leaders” are self serving cowards.
It is a good discussion to have, but a mental midget like Tubberville is not someone who should be involved. He is not even qualified to ask "you want fries with that"?
I mentioned this in my prior post. Rising income inequality is reducing the share of wages and salaries subject to FICA tax. It went from 90% in 1983 and is now down to 81%. Pushing the cap to back up to 90% (whatever that number is) would fill somewhere between 1/3 to 1/2 of the projected future gap. Eliminating the cap entirely would fill a majority of it. Or maybe you eliminate the cap up to something like $250k, and then instead of 6.2% on both sides above that amount make it half that at 3.1% on both sides. A record share of earnings was not subject to Social Security taxes in 2021: Inequality’s undermining of Social Security has accelerated.
I agree with that, but at least he is having it at asking questions, even though most of what he seems to understand on the issue is wrong.
There is no way the boomers and greatest generation are leaving us with $30T in debt and no social security funding, is there? I mean… I hear on here how crazy the youth are but that sounds pretty dang crazy to me.
To be clear, the Greatest Generation and Baby Boomers are not. The politicians (both parties), constantly raiding the Social Security Trust Fund for decades on the other hand....
The American Colonists were the welfare queens of the British Empire. So they fought for their independence from England so they could be doubly taxed by Washington.
As a millennial, I would gladly revoke SS if i could opt out of contributing into it. Its honestly more headache than its worth. It really should be for the poor and thats it.
So is perpetual property taxation. That's just a way to keep people from truly owning their own homes.
Dumbasses shoulda let people invest a percentage in the stock market when it came up back in the 90's.
To put in context, on the flip side much of that raiding of SS was done after the social act of 1983 where the boomers paid in more to SS and rescued it, at least until they raided it. Also there will be a massive transfer of wealth when boomers die more than the amount of national debt. Of course that doesn’t affect everybody equally. Millennials stand to become the richest generation in history, report says.
