Currently, workers pay social security payroll taxes on up to $106,800 of their salary. To ensure the long-term viability of Social Security, would you rather have people pay social security taxes on salaries above $106,800, or would you rather see benefits cut and the retirement age increased to age 69?Raise
payroll cap/Cut benefitsAll 77 10
Dem 84 4
GOP 69 17
Ind 77 11Tea Party 67 20
18-29 80 0
30-45 69 17
46-65 82 8
65+ 75 13$0-30K 79 5
$30-50K 75 11
$50-75K 79 7
$75-100K 78 13
$100K+ 72 18
Why do they worry about FRA, seems to me that they need to raise the age at which you can begin retirement and spouse benefits from 62 to 63 or 64.
ReplyDeleteDo away with the ARF, you work and don't get benefits, too bad.
If FRA goes to 69, no more DRC.
End all child benefits at 18 unless a DAC.
Lower the family max calculations
I would do those before jacking up the contribution limit.
"I would do those before jacking up the contribution limit."
ReplyDeleteWhy would you wish to harm people who actually work for a living, or at least did work before the economy tanked so badly, before raising the contribution limit, which is applicable for those who earn more money per year than most retirees will see in the remainder of their lives?
Hey NJames
ReplyDeleteI'm not for soak the rich. At $106,800 they are already putting in more than they will ever see in return.
Plus a lot of the so called rich are business owners that might not hire another worker, or get rid of some because of the higher tax.
You may - MAY - have a point with your 2nd statement; however, I would insist upon seeing data to back up the claim that an increase in the contribution limit would lead to layoffs.
ReplyDeleteYour 1st statement, though, that people earning $106,800 pay more than they will recover in retirement is inaccurate. Consider as the worse case a self-employed person who pays the full 15% tax (as employer and employee). At a pay rate of $106,800 per year this worker pays $1335 per month in Social Security tax. The maximum amount available for a retiree at full retirement age in 2011 is $2366.00. Thus, the worker retires with a greater monthly income than he paid. The contribution limit could be raised to to $189,280 before a self-employed worker would pay more in SS tax than he would receive at retirement. Double that figure for a worker who pays only his half of the SS tax.