Reply to High earners/savers: How do you feel about social security?

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Reply to "High earners/savers: How do you feel about social security?"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Just fix it.  Pay on all income.  Continue to pay out larger percentage for lower income earners and have a means tested cap that is inflation adjusted for those with $500K or more annual income from other sources outside social security.  [/quote]

Something like this, except the means tested cap idea seems overly complicated. You can just give those people their money.

So many people don't even know there is a point where wages aren't subject to social security and if you eliminate that it solves like 3/4 of the funding deficit. [/quote]

The current max payout for retiring at 70 is about $62k per year. The social security tax is 12.4% (half paid by employer.) If you remove the cap, the government will collect as much money on someone making $500k in today's dollars as they will pay out in 30+ year future dollars.

You can't remove the cap on the tax while maintaining the cap on the future payout. As it is, the benefit is taxed at a much higher rate for people collecting the max or near the max, especially if married. [/quote]

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