Want to run your own simulations of potential changes to Social Security such as raising full retirement age, raising or lowering benefits, lifting the FICA cap? Take a look at the Penn Wharton simulator.
It's interesting that the model doesn't even allow you to look at the effects of completely removing the cap on the FICA tax. The model only allows you to raise it to $400,000. Penn Wharton seems to believe that's completely off the table.
If you're a fan of raising full retirement age or fiddling with COLA, be warned. Neither gets you very far. You're going to have to do a lot more than that.
3 comments:
Small increases in FICA tax rates, combined with raising the cap to $250,000 and a few other tweaks would keep SSA solvent. It's either that or benefit cuts!
at 2:58
um no.
How about a better solution: remove the cap so ALL wages are taxed. Then, cap the maximum benefits anyone can receive at $3000/month. Boom. completely solvent
Even better solution? Make Congress leave at least a few dollars of FICA surplus money sitting around so we can tap into it without them having to actually come up with real, right now General Fund money to cash in the IOUs they leave behind. Seems like the most simple solution and, hey, we're already set up for it to work this way!!
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