Quote:
Originally Posted by Bill14564
You probably need to do more research and math on your proposal.
You want to collect $100/month from those making $400,000 but then increase their benefits by $1,500/month while they are retired. Since most of us won't be working 15 times as long as we are retired, that is a losing proposition.
Oh, it looks like your $100/month is a bit off too. Since the employee's portion of FICA withholding is 6.2%, the additional withholding for someone making $400,000 would be $14,880/year or $1,240/month.
Okay, at $1,240 extra/month while working, the additional payment about balances out the $1,500 in benefits but at best this is a net zero since all his payments would come back to him in retirement with nothing left over for anyone else.
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No that would be $100 MORE per month than they're already paying. Not $100/month total. That's why I said $100 more. More = in addition to. It sounds like you're really working hard to cherry-pick and eliminate details like - interest accrual, the fact that the current generation pays for the generation following it and is paid by the previous generation - that's how the system is set up to work, intentionally. And let's not forget that some people die before they can get back what they put in. And let's also not forget all those immigrants who are here legally on work visas - who pay into Social Security and are not ALLOWED to take any of it out.
My suggestion was to increase the cap - which is only $160,200. That means - if your paychecks came to $160,201, you pay $0 on that last dollar. If your paychecks came to $1,160,201, then you pay $0 in social security taxes on the million, you ONLY pay it on the $160,200. My suggestion was to increase that cap to $250,000.