The Senate Finance Committee has scheduled a hearing for June 24 on The Future of Social Security. There are two scheduled witnesses, Shai Akabas, who has testified at a prior Congressional hearing recommending large benefit cuts as well as tax increases, and Elizabeth Milito, who is active in the right wing Federalist Society.
they need to do something. Cutting benefits for bigger familiies is a good start. They did not pay any more ino the system that smaller families.
ReplyDeleteSure, sounds reasonable. I'm sure people with bigger families won't mind having to decide which of their children has to go without food that day.
ReplyDeleteThey might be able to do it on a case-by-case basis. Elon Musk has 14 kids. I'm completely on board with scrapping his dependent children benefits.
ReplyDeleteYou have to wonder who posted the comments above. Is it AI fighting AI? Anybody who knows much about Social Security knows that family benefits are capped. If a father dies, no more is paid if he leaves behind three children than if he leaves behind one.
ReplyDeleteAI Overview
DeleteThe total Social Security benefit for three surviving children is generally higher than the benefit for one child. However, because of the "Family Maximum" rule, the benefit per child will usually be smaller when spread across three children than when given to only one child.Here is how the calculation works:
The Individual Rate: A single surviving child is generally eligible to receive up to 75% of the deceased parent's basic Social Security benefit.
The Family Cap: Social Security caps the total amount a household can receive based on one person's earnings record. This Family Maximum generally ranges from 150% to 180% of the deceased worker's benefit.
The Distribution: If there is one child, they receive 75%. If there are three children, they do not each get 75% (which would total 225% and exceed the cap). Instead, the maximum is divided equally among the three children.
To estimate exact payout amounts, you can use the Social Security Benefit Calculators or review the Social Security Administration Benefits for Children guide for full details on how the Family Maximum affects your household.
What people do not understand is that the benefits are capped based upon the amount of FICA that is paid in. Someone making $1M per year, even for 30 years, will receive the same as someone making $200K - the FICA tax is only on the first $184,500 is taxed, and that is the amount upon which the benefit is taxed. Raise the tax, raise the benefit that is owed. Simple math.
ReplyDeleteOr better
DeleteMake the amount that is taxed uncapped. And cap the maximum amount of benefit paid. Make it a nice round number like $5k/month. Booms problem solved
But how will that wealth trickle down if it gets taken by the government and spent to pay people rather than locked some rich guy’s hoard of investment property? (I‘m obviously jokingly channeling the broken brains of republicans, for those readers who can’t sense sarcasm)
DeleteI am the commenter @9:47 and am totally human. Rather than correct the other commenter I decided on a pithy response to the cruel and reductive sentiments of @8:03. Also, they could be talking about SSI, which I know has different rules than the standard FMAX-PIA / #Aux
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