Forum Post: Maximum Social Security Tax
Posted 12 years ago on Nov. 28, 2011, 8:41 a.m. EST by Kshreef
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The rich benefit in another way. They pay Social Security tax on only $106,800 of their income. This will rise in 2012 to $110,100. So after that they pay no Social Security tax. For most of us, we pay Social Security Tax on everything we earn. Call your Congressmen.
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We have alot in common. We are both Libertarians who have paid our max SS for the year!.... You do understand that we also will not get any credit for our income for the rest of the year as it applies to the SS benefits formula. Your SS Benefit record will show 106,800 as your earnings for 2011...The SS system (unconstitutional in my mind but what isnt these days) is weighted to benefit the lower paid worker. The benefit formula calculates a higher percentage to the lower paid worker than the higher paid worker. So you think we should continue to pay in, with a capped income for calculation purposes, and a lower percentage of our income as a benefit compared to lower wage participants??
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Totally agree. Hopefully we can get a Libertarian party with candidates that can break through the barriers someday...soon...
The original idea behind Social Security was that it would provide a safety net and augment regular savings for retirement.
Unfortunately, Social Security long ago transitioned to a pyramid scheme in which the current workers pay the benefits of those on the program. The pyramid is now inverted due to the retirement of the baby boomers, and the program is becoming a terrible burden on our young. Ironically, the baby boomer generation of which I am a member is the affluent generation in all of history. Why should we be taxing our children to gain a benefit most of us don't need ? It's wrong.
I say we reduce the tax but include all income and scale back benefits for those who don't need them. The test for 'don't need them' would include earned income, unearned income (dividends, etc), and total assets divided by 30 years. Anyone who's calculated income falls below the safety net would receive a benefit to raise them back to the safety net income we, as a Nation, determine is adequate.
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You do understand all this will do is make the problem worse later when all of those payments get factored in to repayment when those rich get to collect SS?
It will bankrupt the system worse - later. It's just kicking the can down the road.
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Social Security is some sort of retirement scheme
They're benefits are also capped as well. If you wish to take the cap off the benefits, then by all means remove the cap from the wages taxed.
So now anyone making over $110K is "rich?" That's a lot more than 1%.