Social security discussion

[HM]

Remove/Raise the ceiling for paying into SS... currently you stop paying in around $120k. Rework the maximum retirement benefit as well.

Exactly. I don't know why they just don't work on these factors.

 

[HM]

Let's not even get into "saving on your own." I mean, sure I do it and I do a lot. Just like everyone told me to do, I was a good little girl and have 401K plan. How well has that worked out for me after the great housing bust of 2008 when those crooks managed to lose most of it. Even if you save yourself with something that returns a decent rate of interest, you just get swindled.

Yep. We lost so much money in 2008. Mostly in our 529s for the kids. But a few of our Stocks actually disappeared with all our money that was in them. Can't earn back on the ones that went under completely. We said that if we'd just put our money in our savings, we'd be better off now.

 

[mefordis]

Exactly. I don't know why they just don't work on these factors.

They will never do that because it was never intended to be a tax on every dollar earned. Even lower and middle income earners used to only pay for a few months when it was initially rolled out. The history of social security is interesting. The higher income earners were able to opt out altogether - the social security was rolled out to keep old people out of poverty. The higher earners didn't need it at all, hence, they didn't need to pay into the program because they didn't need to use it.

Also, the politicians who pass laws do not want to see such an increase in their own taxes -- they all make well above the cap. This is why you won't see any real discussion by politicians about this.

Additionally, it would not make a huge difference in the amount collected (economists have done the math) - not enough to increase recipient's income. Therefore, they would just tick some people off by raising taxes and the elderly who receive the social security wouldn't even see a raise -- nothing gained.

Think about it - if it would have made a huge difference and been beneficial to enough people they would have done it a long time ago.

 

[mom2rtk]

Also, the politicians who pass laws do not want to see such an increase in their own taxes -- they all make well above the cap. This is why you won't see any real discussion by politicians about this.

Well, if that's their issue, they can just do what they do on everything else and exempt themselves.

 

[mefordis]

Well, if that's their issue, they can just do what they do on everything else and exempt themselves.

Many move back and forth from the private sector, so they couldn't exempt themselves once they move onto that plum, 500k / year job at Merck. That would be a loss of about 23k a year in household income, if my calculations are correct, or a year of private school tuition (well, around her private is about 30k in the upper grades), or a new car for their 16 year old (if they buy a reasonable one). When you start looking at what it would buy, it isn't small change.

 

[mnrose]

The counter argument is that you could transition to a different job within your career or into another career.

Yes, because there are SOOOOOO many companies hiring people 60 years of age and older. Heck, even people age 50 and over have trouble finding jobs.

 

[runwad]

I think Social Security Disability has gotten out of hand. People collecting when they could get another job doing something else that doesn't affect their ailment. For example, a tax accountant who has carpal tunnel gets disability. Really there are no other jobs that person can do? They need to get disability?mmmm

 

[mnrose]

I think Social Security Disability has gotten out of hand. People collecting when they could get another job doing something else that doesn't affect their ailment. For example, a tax accountant who has carpal tunnel gets disability. Really there are no other jobs that person can do? They need to get disability?mmmm

Yup. Completely out of hand. One of those news shows (like 60 minutes, but it may not have been that one) did an expose of a town where some phenomenal percentage of people in the town were on disability. One doctor. One law firm. It was pretty disgraceful.

I think that is why it is REALLY hard to get disability, as it should be. But, there still is much abuse.