quote:
I heard this on the Wall Street Radio program this morning, that if nothing is changed, SS recipients would only reiceve 3/4 of their benifits by 2035. Do you believe this will happen, or some other solution will be offered?

Here's a couple of changes to SS that may happen. First thing will be raising the payroll tax limit on SS, could easily see that with no limit on annual income for the individual, you'll pay the 6.2% no matter how much you make and you're employer will pay more but the employer will have a limit. Second will be means testing for reduced benefits all the way to no SS benefit. If you're a 1%'er you're the target demographic. The Dims will be the ones pushing this and it will play well for them in upcoming elections, poor vs rich.....watch what I tell ya.

It makes me sick to think that between myself and my employer there's been 12.4% of my annual wage allegedly set aside for my retirement and there may be nothing available after working 40+ years.....that's a lot of money, imagine how much money I would have even it it was invested in fixed interest and bond funds over 40+ years, I would be rolling in it.

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Posted by Ace Midnight

Between sanity and madness

Member since Dec 2006

89810 posts

Posted on 4/23/19 at 9:56 am to Bass Tiger

quote:
First thing will be raising the payroll tax limit on SS, could easily see that with no limit on annual income for the individual, you'll pay the 6.2% no matter how much you make and you're employer will pay more but the employer will have a limit.

How will it work with the employee paying more, but the employer won't? What private employers will do is reduce raw wages and increase profit sharing, or 401k matching, other benefits because everyone will be in favor of that.

quote:
much you make and you're employer will pay more but the employer will have a limit.

Now, you're right about this, but they will lift the cap on contributions first. Pure class warfare. Lift the cap so you're paying full OASDI/FICA on every dollar of income.

Then cap benefits at something like where they're at now with max contributions ($2861 or whatever, around $3k).

Finally, they will means test it so if you've saved $2 million for retirement through your 401k or whatever, you get nothing. I mean, you don't need it right? The very folks who got hit with an uncapped contribution get hosed at the end. The most productive members of our society.

The rich won't pay it because their money isn't in wages subject to this - taxation is largely voluntary for them. The poor will pay it, but get full benefit. The middle class get screwed again and again (and not in a good way).