Talk of The Villages Florida - Rentals, Entertainment & More
Talk of The Villages Florida - Rentals, Entertainment & More
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SS funding
Wondering why the depleted SS funding is not being restored to cover expected expenditures for the next 50 years?
With all the trillions of $$$ being given away and lots of new people being added to the qualified recipient list, it seems like a good time to invest a few billion $$$ in SS funding. |
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#2
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Really??
Jus kick'n the can.
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Identifying as Mr. Helpful |
#3
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All politicians want is to kick the can down the road for others to deal with.
the longer they wait to fix it the harder it will be. |
#4
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Rob Peter to pay Paul? Could make things even worse for SS by making it a target again.
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Why do people insist on making claims without looking them up first, do they really think no one will check? Proof by emphatic assertion rarely works. Confirmation bias is real; I can find any number of articles that say so. Victor, NY Randallstown, MD Yakima, WA Stevensville, MD Village of Hillsborough |
#5
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Quote:
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#6
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#7
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There have been serious proposals on shoring up the Social security finances for years. The last significant changes happened in 1980s. There are yearly changes in the cap subject to FICA but those don't keep up with the increased cost of SSec. For 2021 the earned income cap will be 142800 after which any earned income is free of SSec taxation.
In 1982 90% of the earnings of Americans was taxed for SSec. But only 84% was taxed in 2017. This is because of increased income inequality. Eliminating the cap would make SSec solvent for 40 years per the Congressional Research Service, as long as the benefit calculations remained the same. For those who are unaware, the benefits are NOT the same percentage of payout for pay-in at all income levels. Someone whose average earned income was $70,000/year does not get double the benefit of someone who averaged $35,000/yr. The system is weighted to give a higher retirement benefit to the lower earner relative to the amount paid in. Obviously the higher earner does get a higher absolute SSec payment Read page 16 of the linked report to see how this works. A small increase in the tax rate from the present 12.4% to 13.8% makes the system solvent for 75 years. Keep in mind that the payment into Medicare from earned income is not capped at all. All earned income is Medicare taxed. Another issue is that employers are paying a lower amount of their benefit to employees as earned income. This is mostly true of higher earners. The working poor get paid a salary all of which is subject to FICA and Medicare tax, period. The better off get a salary subject to FICA, and health insurance, not taxed, life insurance not taxed, 401K match not taxed, Flexible spending account not taxed, Disability insurance not taxed. Just including the cost benefit of fringes in the Soc Sec taxable base would eliminate 43% of the solvency gap Lastly I'd like to ask what the OP meant by Quote:
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Men plug the dikes of their most needed beliefs with whatever mud they can find. - Clifford Geertz |
#8
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Social security. They and we the people allowed, demanded it get out of hand. I recall reading when FDR created, allowed the plan to be created, there were 14 plus people paying in for everyone collecting. Today, the number is 2.5. To make it worse, prescription coverage has been added, funding for national health care has been added. With no additional tax to cover it. The choice, cut back what is paying out. Wait! I paid in for 45 years. What do you mean you spent my money to buy our parent's votes? Increase taxes on young people? Wait we want to tax them into poverty they will scream. What we are doing. We are increasing the deficit. A battle cry of the American Revolution-No taxation without representation. We are taxing people that have not even been born yet. We the people are guilty but blame others. It is glorious to spend more, pay out more. Paying old debts. There is no glory in that, till after it explodes and there is no other choice. |
#9
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To me the best way to fix this is to increase the retirement age on a gradual basis to somewhere in the early 70's and keep increasing the age as our lifespans increase. When they started this shell game and payments started at 65 they kind of forgot to remind people that the vast majority would not live that long so they amassed a large nest egg that the govt decided to borrow with so far no intention to repay. And remarkably we keep voting in the same people who have mismanaged our economy for years and years. |
#10
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I simply made an observation about taxes, and then shared how your life was blessed (and great for you). I do however read that type of post on here quite a bit and not sure what to make of it. Poor, rich, middle, whatever.....we all had options and decisions. I do not accept the basis that rich did not put anyone other than "ahead of the pack" in any race......still dependent on living a good life, working hard, etc. Those things apply to poor or rich, but poor or rich does not guarantee success. Seems many think they are alone in making good decisions and also think that if you make those decisions, you will be successful. That is not true, as we all know. People who are immoral, corrupt, etc are living the good life but not because they made all the right decisions.....people who are very moral, good folks who did it all right are living a tough life, not because they made all the right decisions either. Generality do not cover it. If all we needed to do was live a good clean, moral life and play by the rules, it would be great, but that is not real life. Some do not even have to worry if they play the cards right. |
#11
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High Income Inequality Hurts Social Security's Finances "Yet, income inequality adversely affects Social Security’s finances at time when American families need Social Security benefits more. Income inequality rose starting in the 1980s and remained persistently high in recent decades. Income growth at the bottom and in the middle of the income distribution have slowed, but accelerated at the top and grown faster at the top." Last edited by Bucco; 03-29-2021 at 10:52 AM. |
#12
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Government of the people by the people and for the people and all that stuff. Government will do what we demand. We demand more and yet we say any body but us should pay for it The national debt, last time I collected my courage enough to look is 29 Trillion dollars. Does anybody think as I do? First thing is how many of us understand what one trillion dollars is let alone 29 of them? If, we inherited a billion or so and decided we wanted to pay off part of the national debt, who would you make the check out to? Simple questions sometimes seem funny or foolish. The answer is a rude awakening. Many would say China. The reality is shocking. Last time I looked, it was Japan and China. We owe slightly more to Japan than to China. More important, more shocking is that we owe about 20% of the national debt to Japan and China together. Social Security holds 40% of the national debt. The reality, we are buying our own debt. As said elsewhere if any company was being run this way we would, we should demand our government close it down. We are the problem. We fight among ourselves. We refuse to see the real problem we blame anyone but ourselves. Sadly, throughout history that has been and will continue to be so. |
#13
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Social Security is not a pension system, it is a program to provide several benefits to workers and their families throughout life and beyond and has always paid a proportionally greater benefit to the working poor, and that's a good thing. |
#14
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That's how it works though. I'll be getting checks that came out of your grandson's pay, and your kids will get SS checks that will come out of their neighbor's grandkids' pay. Here's a little trivia: Ida May Fuller worked for only 3 years under the Social Security program, when it first was formalized in 1937. In 1940 she received her very first monthly check, for $22.54. She died in 1975 at the ripe old age of 100. During her lifetime, she collected $22,888.92 (that's almost twenty-three thousand dollars for those who have trouble seeing decimal points) in Social Security checks. She paid IN a total of $22.75 (twenty-two dollars, seventy-five cents for decimal-impaired folks) in Social Security taxes during the 3 years she worked at the start of the program. You get out MUCH more than you put in, as long as you don't earn too much in the first place. There is a cap on how much you can earn, even though you still have to pay into the system. |
#15
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it's a political football that will generate votes based on their campaign lies
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Closed Thread |
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