Should the Social Security and Medicare Age be Raised

[22lcidw]

There is no Trust Fund

Social Security taxes are spent on retirees as soon as they are received

The SS taxes are first put into the federal general fund. Whatever surpluses in payouts are then turned into IOU's.

 

[kyzr]

That appears to present a false dilemma fallacy implying there are only two solutions: raise age or lower benefits.
This is untrue. There is are other options including: Maintain the current rates and increase the cap (SS), and Increase the rates (both).
WW

There are MANY "fixes"
1. Raise the cap fix 30% of the shortfall
2. Raise the tax fix 52% of the shortfall
3. Reduce the COLAs
4. Force all new state and local government folks into SS
5. Raise the age 62 early retirement age to 64
6. Raise the full retirement age to 68 fix 16% of the shortfall

• Eliminating the taxable earnings cap over a 10-year period would fix 74% of the long-term financing gap all by itself.
• Raising the Social Security payroll tax rate from 6.2% to 7.2% over a 20-year period would generate 52% of the shortfall.
• Finally, gradually raising the full retirement age to 68 would take care of 16% of the funding gap.

The Future of Social Security

An in-depth look at the current status and long-term stability of benefits that provide retirees with a substantial portion of their monthly income.

www.aarp.org

SS can be fixed very easily if the stupid DC morons would negotiate.
Even the new Bill from AOC is a step in the right direction.

Congress has a new plan to fix Social Security. How it would change benefits

A new version of the Social Security 2100 Act aims to draw support from President Joe Biden and Republicans. Here's how it would change the program.

www.cnbc.com

 

[Lesh]

The SS taxes are first put into the federal general fund. Whatever surpluses in payouts are then turned into IOU's.

I don't know the exact machinations of how the "IOUs" are purchased. I know that those TREASURY BILLS are purchased. with any payroll tax revenues which are not immediately paid out in benefits.

Do you have a link to that?

 

[skews13]

SS and MC were started in 1934 and 1965 respectfully. In 1934 job were much more physical and people’s bodies broke down starting in their 50s. Nowadays go to any company and you see people working well into their 70s… heck even construction are less strenuous on the person’s body. The trend is only going to increase. In addition, medicine is getting better and people are living longer. This reality should be recognized.

In addition it is much easier to take care of oneself and eat better and feel better at older ages.

Our safety nets need to reflect this new reality.

The reality is the income contribution cap should be ended.

 

[DBA]

They’ll still receive their benefit

Obviously far less of it based on their contribution.

 

[Ray From Cleveland]

There is a lot of money on the table that is not taxed for Social Security.

Someone making $1 million or more a year stops paying at $122k

Give them additional payouts at a reduced rate

Billionaires are not looking forward to drawing on Social Security
Working Americans are

In other words tax the rich to give to the working. Always the liberal answer.

 

[BluesLegend]

The reality is the income contribution cap should be ended.

Sure, so long as my SS benefits increase for all the extra money I'd be contributing. I'm not paying the SS contributions for you bunch of fat has lazy moochers.

 

[rightwinger]

Sure...now you become a Republican.

Not really

Republicans would kill Social Security and Medicare first chance they get

 

[rightwinger]

In other words tax the rich to give to the working. Always the liberal answer.

Ummm…
yes

 

[BluesLegend]

Not really

Republicans would kill Social Security and Medicare first chance they get

Another lie, no surprise there.

 

[rightwinger]

Another lie, no surprise there.

Paul Ryan's plans for Medicare are scary | CNN

The House Speaker made it plain this week: The GOP intends to cripple Medicare -- which serves 55 million Americans -- and the party's deficit-boosting tax reform bill is the first installment in its three-part strategy, writes Errol Louis.

www.cnn.com

 

[DBA]

We should note of course that this poster is wealthy and doesn’t want or need ANY social security.

In fact he wants it to go away completely so he has even more money

If it went away completely for someone making 128k(the current cap) for 30 years that is $7936/yr or $661/mth. Compounding at a very modest 5% annual rate for 35 years said person would have an additional $716,000 in retirement. If said person retired at 70 and lived for another 10 years(average life expectancy) he could collect $5967/mth until the day he died and that doesn't account for the compound interest that would still accruing on the declining balance. There would be a substantial amount left. The current maximum benefit per month is $4194. Now, just imagine raising the cap but not the benefit for someone making 200k or 250k. The numbers become astronomical. Yeah, sorry, it is a losing proposition for successful folks.

 

[tahuyaman]

Just to throw this out there. When people talk about raising the cap on the "rich", the Social Security tax only applies to earned income (wages), it does not apply to passive income (interest, stocks, inheritance, investments, etc.)

WW

What’s your point?

 

[tahuyaman]

Paul Ryan's plans for Medicare are scary | CNN

The House Speaker made it plain this week: The GOP intends to cripple Medicare -- which serves 55 million Americans -- and the party's deficit-boosting tax reform bill is the first installment in its three-part strategy, writes Errol Louis.

www.cnn.com

Paul Ryan? Who cares?

 

[rightwinger]

What’s your point?

His point is that investment income is not treated the same as earned income

 

[DBA]

There is no ”Fair Tax” that results in the Rich paying more and working Americans paying less

Of course there is. Will the wealthy be left with more money. Of course they will, but it doesn't negate the fact that they would have paid their equal share on a percentage basis.

 

[DBA]

His point is that investment income is not treated the same as earned income

And if it was, our economy would collapse. Yes, you are dependent upon rich folks and don't even realize it.

 

[22lcidw]

I don't know the exact machinations of how the "IOUs" are purchased. I know that those TREASURY BILLS are purchased. with any payroll tax revenues which are not immediately paid out in benefits.

Do you have a link to that?

IOU's are just promises to pay when the time comes. So as the surpluses collected turn negative than the government is going to have to ante up the money in other ways to pay off recipients. It is a sleight of hand way of them getting money for their current budgets. In reality right now, the recipients are losing compared to the inflation which is advantageous to the government.

 

[DBA]

There is NO Fair Tax that doesn't increase taxes on the middle class and poor and lower taxes on the wealthy

Full stop

This is mind numbingly ignorant.

 

[iamwhatiseem]

There is no ”Fair Tax” that results in the Rich paying more and working Americans paying less

No because the bottom 55% pay no income tax. How could it?
The problem with American taxation is the corrupt federal government has used it for decades as a means to pay back favors, support their favorite group of people etc.
I have said for decades, only the bottom 10% or so should pay no income taxes. And absolutely NO ONE should get more back then they paid in except for unusual circumstances.
And as I have said forever also - taxes don't need to be raised. Wasteful spending needs to be less. A case in point was the greatest pork barrel bill in American history - Build Back Better. So full of wasted, bloated spending that the actual amount to go for actual good... was pennies on the dollar.