My Opinion

Making Social Security solvent is not a big deal …if we could get politicians out of the way.

Raise the taxable wage to $200,000 (use for benefit calculation as well) and implement the following and the problem is solved. Why is it so hard to start talking? Why?

Advertisements

9 replies »

  1. The increase of 1.39 per cent on top of the current 6.2 per cent is a 22.4 per cent increase in the payroll tax for both employee and employer. The negative consequence is a decrease in employment, especially for the lowest skilled and lowest paid.

    I think an increase of some kind is inevitable, but other proposed solutions along with a smaller increase would be better. Such as, raising the minimum retirement age one year or two, increasing the amount of income subject to the payroll tax (as suggested), raising the full retirement age s year or two, and as an incentive to not draw benefits early, eliminating the payroll tax when you reach the minimum age.I

    And let’s not forget that the Medicare payroll tax will almost certainly be increased as well.

    Like

    • Virtually any cages to SS will impact the economy , including doing nothing. A small tax increase will be invisible to workers just as the tax holiday during the recession was not even noticed by most. What is unfair with a tax increase is that today’s workers are paying the full burden of changes that should have been implemented decades ago. An ideal solution is one with modest changes borne by all Americans. For example, I think that there should be no COLAs or limited ones for anyone who begins collecting Social Security at the maximum amount. Those individuals should have had resources to allow them to keep up with inflation.

      Like

      • RD – Record corporate profits. Now is the time to raise the SS payroll tax. The business Income tax is now much lower. I say raise the employer SS payroll tax rate the total 2.78%. Then the workers are still at 6.2%. Since most companies do not offer pensions, their cost per employee has gone down over time. It is not my fault that the government did not tax me enough during my working years to cover my benefits. But, if now they wanted to tax my entire SS benefit it would only be $1854 per year and I would be ok with it. Any increase for today’s workers will be more in line with the thousands of dollars that they will receive in retirement. Adjusting the early retirement age up from 62 will not save anything, it will cost more because the benefit check will be bigger. I did the math and by taking my SS benefit at age 62, I have saved SS over $60,000, if I live to be 85. I don’t really care how they fix the shortage, they just need to fix it. I am not holding my breath, anything will be done until 2034.

        Like

    • JRATT, think about what you wrote, “Adjusting the early retirement age up from 62 will not save anything.” Take that to its logical conclusion, adjusting it to 72 won’t save anything? Yes, under the current system in place, drawing at 62 or 66 is revenue neutral. But changing the minimum age to 64 and the full age to 69 slides the revenue neutrality period two years further out.

      Like

      • They just need to raise the SS payroll tax, or tax SS benefits 100% done, over.
        There are plenty of workers who’s health conditions require them to take SS benefits at 62, I do not see that changing. Or, we will have more people applying for SSDI from age 62 to 64 with no other option.

        Liked by 1 person

  2. The employers and employees have been getting a break on SS payroll taxes, for years.
    Low wage employers have always paid less in SS payroll taxes per worker. And, these same workers get the best return in benefits, per taxes paid. The SS payroll tax rate has not been raised since 1990, but the benefits have continued to go up. Since the government just lowered income taxes, now is the time to raise the SS payroll tax. No one should complain about this modest increase. Everyone should contact their government overlords and demand they fix SS now. I will be emailing my congressman and senators with a link to this blog.

    But, the Dummycrats and Ripoffagains do not want to get rid of a campaign issue, that they can spin (lie) about to get votes.

    Like

What's your opinion on this post? Readers would like your point of view.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s