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Retirement Discussions / Retire Well on Less
|Subject: Re: SS conclusion||Date: 11/12/2003 9:41 AM|
|Author: cliff666||Number: 231 of 1499|
The government has made promises that it just can't keep. Most of us agree on that. The government will have to either raise the retirement age to receive benefits, reduce those benefits, means test them or a combination of all 3. This will likely be the case. I don't see any alternatives, other than raising SS taxes, which would mean death to a politician's career. One possible way to increase the tax without alienating too many is to keep raising the taxable income limit. What is it now, over $80K? Let it increase (Won't bother me all that much!) I'm willing to go for raising the age and a reduction of benefits but I'll never agree to means testing unless the bar is set for those who are really “rich”. Unfortunately, if the bar is set too high, the money saved won't be very much. We read that only ~3.5% of American families are worth more than 1 Million, so cutting benefits off at 1 Million assets would only save 3.5%.
I've had self-employment income as well over my working life and am well aware of the raping of 15.3% off the top that the SE are rewarded for being entrepreneurial minded. If the government did not take so much out of our checks then you probably would see less people complain. But you are talking about roughly 13% of a persons income that he has had forcefully put away for SS his entire life (for those of us that started working in the early 80's; I don't remember when Dole and his bunch increase the SS deductions).
Those who are employed by someone else also get taxed at the 15.3% rate, it's just that the employer gets to pay half of if, so the wage-earner doesn't feel the pain. The tax still gets paid and it is still a payroll tax. If you want to be really taxed, just own a small business with employees. You get to pay your 15.3% PLUS 7.65% of your employees' tax.
just sayin' there's an old saying about "free lunch" and there ain't none.
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