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....
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 "
ReplyDeleteExcellent point. I think the bend points were a creative and effective way of helping make retirement and disability more palatable for the most vulnerable.
ReplyDeleteBut, 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
Speaking of more benefits, how long before SSA falls in line?
ReplyDeletehttp://www.uscis.gov/portal/site/uscis/menuitem.eb1d4c2a3e5b9ac89243c6a7543f6d1a/?vgnextoid=2543215c310af310VgnVCM100000082ca60aRCRD&vgnextchannel=2543215c310af310VgnVCM100000082ca60aRCRD