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Bagholder's avatar

I think the lack of outrage stems from the fact most people don't have the time - we are all too busy running on the hamster wheel that pays for this nonsense - to actually pay attention. I, for one, have thoroughly enjoyed the news cycle the last month. DOGE Trimming back the Federal workforce from the current 2 million people is long overdue.

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Collette Greystone's avatar

The news cycle has been fun. I hope people start paying attention.

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Paul Kirwin's avatar

A question…

“As of 2024, the Social Security tax rate is 12.4% of your earnings up to a maximum wage base limit of $168,600.”

Why is there an upper limit? What would be the harm and/or the benefit of raising or completely removing the limit?

What would establishing a no-tax lower limit while raising the upper tax limit do?

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Collette Greystone's avatar

Why is there an upper limit?

the reason the payroll tax cap exists is because there's also a cap on maximum payouts from Social Security at full retirement age.

https://finance.yahoo.com/news/why-doesn-apos-t-congress-110600776.html

What would be the harm and/or the benefit of raising or completely removing the limit?

-Taxing the rich isn't fair

-Another problem with taxing the rich is that any amendment(s) to Social Security will require 60 votes in the Senate to pass. With it being four decades since either political party has had a supermajority in the Senate,

-It could compromise campaign financing

Source:

https://www.fool.com/retirement/2018/07/15/3-reasons-we-arent-taxing-the-rich-to-save-social.aspx?&utm_campaign=article&utm_medium=feed&referring_guid=7438ffb3-92a7-4bc2-a466-2ae8457c1c23&utm_source=yahoo-host

What would establishing a no-tax lower limit while raising the upper tax limit do?

My answer: there are more worker bees than wealthy you need someone to fill the coffers.

A good read: https://www.verifythis.com/article/news/verify/social-security-verify/what-raising-eliminating-social-security-tax-cap-would-mean-for-funding/536-475842ae-8475-43b3-a716-043896f1136b

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Paul Kirwin's avatar

Thank you so much. Lots to digest. I read the last article first and see that raising or eliminating the limit would extend the life of the SS fund considerably. What I didn’t see is any reference to the giant boomer bubble passing through the system now. Over the next 10-20 years the number of Americans drawing SS should fall quite rapidly.

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Collette Greystone's avatar

Boomers will actually pay more into the system than they will receive in benefits.

A lengthy but very detailed read: https://www.ssa.gov/policy/docs/ssb/v65n3/v65n3p1.html

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CeeMcG's avatar

Outstanding and thorough analysis! Going to share this with my kids.

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Rosemary B's avatar

I am outraged.

I remember a story from long ago, regarding Africa. the US had sent Africa a bunch of sewing machines office equipment (projectors) and farm machinery. a year later, My father went over to check on the status of the delivery.

The guy thanked my dad for the delivery and showed the big room where all of the stuff was stored. They had no electricity and no gas. :-/ that was probably in the 1980s. I am not sure what the status is these days, but my dad was pretty shocked at the stupidity of the whole operation from start to finish. Well, Africa is pretty dry, I think the stuff is probably well preserved

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Michael Woudenberg's avatar

Too bad the TEA Party from 2010ish fell apart.

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