Jul 25, 2013

Groups Push Social Security Expansion

     From CNN:
A coalition of progressive groups claiming to represent millions of Americans is planning a multi-state effort urging the expansion of Social Security benefits. The Progressive Change Campaign Committee (PCCC) and Democracy For America (DFA say they will be joined by several other groups including MoveOn.org in putting out a series of TV and online ads planned for the near future. ...
An email sent to the progressive coalition's supporters claims the bills would give Social Security beneficiaries an additional $452 per year by age 75 and $807 per year by 85.
The bill would also eliminate the cap on how much of individuals' earnings can be paid into Social Security. Currently, Social Security contributions are limited to the first $113,000 of income.
Eliminating that cap is aimed at making the wealthy "pay their fair share," the email says....

3 comments:

Anonymous said...

The bend points in the retirement computation already provide a disproportionate benefit to the low income wage earner. Raising the maximum taxable without a change in the benefit calculation will result in the high wage earner continuing to pay far more than their "fair share "

Don Levit said...

Excellent point. I think the bend points were a creative and effective way of helping make retirement and disability more palatable for the most vulnerable.
But, the last bend point provides about 15 cents of benefits for every dollar provided.
The bend points should put an end to people's beliefs that benefits are tied to contributions.
No insurance company could survive returning 15 cents of benefits for every dollar paid in.
SS benefits are not linked to contributions paid, but to earnings history.
There is no legal connection between benefits and contributions.
That's what taxes are - non-exchange transactions.
You are forced to pay in, the government is not forced to pay you back.
This is verified by the FASAB, the accounting advisor for the federal government, regarding Social Security.
Don Levit

Anonymous said...

Speaking of more benefits, how long before SSA falls in line?

http://www.uscis.gov/portal/site/uscis/menuitem.eb1d4c2a3e5b9ac89243c6a7543f6d1a/?vgnextoid=2543215c310af310VgnVCM100000082ca60aRCRD&vgnextchannel=2543215c310af310VgnVCM100000082ca60aRCRD