What's the answer to saving/fixing Social Security?

[ttwtt78640]

Unfortunately, Social Security does not work that way.

There is no divide between generations within the system, just a division of who is paying in against who is receiving benefits out. That ratio is one of many issues Social Security faces. And ultimately the responsibility of fiscal health of Social Security (again, which is just a matter of intergovernmental debt held by trend) is entirely the fault of Congress.

"Let if fail" takes down all of us who have been paying into it up to this point, no generation gets to walk away clean.

The only alternative left is to deal with Social Security as it stands, and the only solution is collecting more as a means to increase what is on the books of that Fund.

SS has an actuarial problem: there are fewer current workers (contributors) per current beneficiary and current beneficiaries are living longer (thus collecting benefits for more years).

 

[CaughtInThe]

Is anyone opposed to an increase in the FICA tax to support and fix social security. I'd be fine with a percent or two and an increase of 1 year more to take the benefit.
Any other plan that may work?

Decrease the benefits for all people you're age.

 

[OrphanSlug]

SS has an actuarial problem: there are fewer current workers (contributors) per current beneficiary and current beneficiaries are living longer (thus collecting benefits for more years).

Damn close my friend, damn close.

You are correct in that Social Security has an actuarial problem, but combined with a Congressional apathy problem.

We will eventually see a financial problem of intergovernmental debt holdings by Social Security run out. No matter if it is 2035, or a few years either direction based on the economy and conditions as we go, there will be a time in which inbound intergovernmental debt will see a ledger with no other entries.

Which leads us to the second issue, we also have a legal authority to pay problem. I had to look this up to ensure I was not hallucinating, but as the current Social Security Act(s) stand, there is no duty for Congress to pay full benefits to cover any Social Security Fund lack of assets to pay it. Meaning, when intergovernmental debt holdings reach zero there no longer is "earmarked" funding to pay benefits, and therefor force automatic cuts in benefits paid out. What is considered "earmarked" cash to cover benefits payments out is enough intergovernmental debt held at the time of need to cash them out.

Now this stairsteps down, at the point of depletion of assets held by the Fund then payments out is entirely based on projected payments in. The Social Security Administration estimates this is something like 80% of scheduled benefits at the point of depletion, falling each year from that point further.

Literally, forced benefits cuts by Congressional inaction.

 

[aociswundumho]

You lift the cap, but keep benefits the same.

Ok, but now it's just another welfare program, and definitely not a form of "insurance".

 

[aociswundumho]

Is anyone opposed to an increase in the FICA tax to support and fix social security. I'd be fine with a percent or two and an increase of 1 year more to take the benefit.
Any other plan that may work?

It's already a terrible deal for young workers, and especially for small business owners. Raising the tax makes it even worse.

 

[Threegoofs]

SS has an actuarial problem: there are fewer current workers (contributors) per current beneficiary and current beneficiaries are living longer (thus collecting benefits for more years).

Hey wait… I have an idea!

Why not allow lots more immigrants to come here and work- so they pay into SS and keep everything solvent?

 

[Threegoofs]

Ok, but now it's just another welfare program, and definitely not a form of "insurance".

It isn’t insurance. It isn’t welfare. It’s Social Security. Developed to keep seniors out of poverty. And that’s an obvious fix.

 

[BabaVoss]

Is anyone opposed to an increase in the FICA tax to support and fix social security. I'd be fine with a percent or two and an increase of 1 year more to take the benefit.
Any other plan that may work?

There have been a number of ideas proposed. Lifting or removing the cap is one. Adjusting the ages is another. Taxing high earners at higher rates is another. Some combination of those would be workable.

 

[MAGAnificent]

Is anyone opposed to an increase in the FICA tax to support and fix social security. I'd be fine with a percent or two and an increase of 1 year more to take the benefit.
Any other plan that may work?

I am opposed to any increase in the FICA tax. A solution starts with passing a law to remove the ability of congress critters from dipping into the SS and Medicare trust funds for the sake of general funding projects. Allowing workers to contribute a portion of their FICA taxes to a private retirement plan would be helpful as well.

 

[ttwtt78640]

Hey wait… I have an idea!

Why not allow lots more immigrants to come here and work- so they pay into SS and keep everything solvent?

Hmm… wasn’t that the Biden/Harris plan which the electorate rejected?

 

[Threegoofs]

Hmm… wasn’t that the Biden/Harris plan which the electorate rejected?

I don’t think so. But it was part of the bipartisan Immigration deal Trump killed.

 

[Ganondagan]

And Congress has been a majority of Boomers since the 90’s.

They didn’t fix it for decades. And they still aren’t really concerned with fixing it.

Frankly, I’ve spent my entire life not counting on ever seeing a penny of Social Security and anticipating the system would collapse before I reach retirement

I really don’t care if it fails anymore. This problem could have and should have been fixed a long time ago. At this point, I’m fine watching it fail. Leopard and faces

Maybe then some folks will wake up and realize the government isn’t and hasn’t been working for them for years now

SSI is not going to be fixed. Politicians are terrified to touch it, it's the third rail of politics. I'm afraid it's going to collapse, not in my lifetime but in the lifetimes of my children.

 

[Peacenik]

Is anyone opposed to an increase in the FICA tax to support and fix social security. I'd be fine with a percent or two and an increase of 1 year more to take the benefit.
Any other plan that may work?

1. Remove the cap for high wealth. It is absurd that the super rich meet their cap within the first few minutes of each year and do not pay a penny into the system for the rest of the year. Senator Elizabeth Warren said if the cap were lifted the System is instantly solvent and could increase benefit payments by $200. That is money a lot of retirees sorely need.

2. Let far more immigrants in. The overwhelming vast majority of immigrants are peaceful, law abiding, and hard working. All they want to do is work. They are a benefit, not a detriment. They are happy to pay taxes to live in the USA because they sincerely appreciate the country and don't just take it for granted like so many people born here. And if they are going to live and work here, create a functional path to citizenship. We can grow our country and it's productivity in this way. We need more young workers to pay into Social Security. They are clamoring to get into the USA and work. We need to stop wasting money trying to keep them out and focus on vetting efforts to make sure they are beneficial to our society.

There is no problem with the Social Security System which has not been created by stupid Republican legislation and the lack of logical Progressive legislation.

 

[Mr Natural]

Eliminate the earnings cap.

Problem solved.

 

[dockside]

Is anyone opposed to an increase in the FICA tax to support and fix social security. I'd be fine with a percent or two and an increase of 1 year more to take the benefit.
Any other plan that may work?

My former financial advisor and friend, now deceased, who was a conservative, told me that all Congress needed to do was extend the tax to everyone who worked and drew income therefrom. Problem solved. And, she was quite wealthy and willing to pay tax on her entire net income.

 

[ttwtt78640]

1. Remove the cap for high wealth. It is absurd that the super rich meet their cap within the first few minutes of each year and do not pay a penny into the system for the rest of the year. Senator Elizabeth Warren said if the cap were lifted the System is instantly solvent and could increase benefit payments by $200. That is money a lot of retirees sorely need.

2. Let far more immigrants in. The overwhelming vast majority of immigrants are peaceful, law abiding, and hard working. All they want to do is work. They are a benefit, not a detriment. They are happy to pay taxes to live in the USA because they sincerely appreciate the country and don't just take it for granted like so many people born here. And if they are going to live and work here, create a functional path to citizenship. We can grow our country and it's productivity in this way. We need more young workers to pay into Social Security. They are clamoring to get into the USA and work. We need to stop wasting money trying to keep them out and focus on vetting efforts to make sure they are beneficial to our society.

There is no problem with the Social Security System which has not been created by stupid Republican legislation and the lack of logical Progressive legislation.

Hmm… if #1 fixes the SS problem then why bother with #2?

 

[Threegoofs]

Hmm… if #1 fixes the SS problem then why bother with #2?

Did you miss the phrase 'they are a benefit, not a detriment'?

 

[donhughesmusic]

We just need to wait two weeks for Donald’s concept of a plan to be released.

 

[Peacenik]

Hmm… if #1 fixes the SS problem then why bother with #2?

Things can be done with enough to suffice. Or not enough, which is the current situation. Or things can be done to the utmost. The utmost produces the best results. There are so many more benefits to doing the utmost besides the Social Security aspect they are too numerous to count. Basically, it results in a better country. It would make America greater.

We see the maga cult obsessed with vain attempts to recreate some mythical time in the past when they believe the country was great, the aspects of which they believe have been lost. But that's dumb. Why settle for trying to repeat something from the past when an even better future is possible? Why settle for great when greater is possible?

To do greater, things need to be done which have not been done before.

Lift the SS payments cap, let more well vetted immigrants in, let them work, produce, contribute, and pay into the system as they build America back better. Win-win-win.

 

[WorldWatcher]

Is anyone opposed to an increase in the FICA tax to support and fix social security. I'd be fine with a percent or two and an increase of 1 year more to take the benefit.
Any other plan that may work?

I've come to believe that we need a re-evaluation of SS Taxes in general. The workforce and economy are very different than they were in 1935 when the system was created. Now I'm leaning more toward, making SS Tax applicable to all income the same way it is determined for Income Tax (wage, interest, dividends, short term stock commodities, and long term capital gains) as a new revenue source. As such:

• Current SS tax of 12.4% would remain (6.2% by the EE and 6.2% by the ER).
• Non-wage income would be taxed at a rate equal to 25% of the total FICA rate or another way to say it as 1/2 of the individual EE rate. That would currently be 3.1%.
• Financial institutions would be required to collect the 3.1% at the time of posting, just like employers (ERs) collect it at the time of payment.
• Because the non-wage rate is 25% of the wage rate (3.1% compared to the FICA total of 12.4%), then 25% of non-wage income would be credited to SS Income for that year.
• Current cap of 160K on wage income could remain the same.
• A cap of 40K would also apply to non-wage income. (25% taxed, so 25% of wage cap)
• The sum of the wage credit and non-wage credit is posted as the total SS Income for the year which is then used to determine SS benefit amounts.

Example:

A high wage earner makes $300K in wages, taxes are collected on wages up to $160K for a total of $19,840 in wage tax. Applicable income credited for the year for future benefits calculations is $160K. If the same person has in additional $100K of non-payroll investment income, the SS Tax would be $3,100 at 3.1%. Total SS Taxes would then be $22,940. 25% of the $100K passive income would be credited to SS Income for the year equaling $25K since the tax rate is 25% of the full FICA rate. So the individuals total SS Income credited for the year would be $160 + $25K = $185K.

A "Low Wage" earner making say $40K would pay 6.2% ($2,480) on wages. If they had $500 in interest than $3.1% = $15.50). Total SS Income for the year would then be credited as $40,125. $125 being 25% of the $500 in interest.

WW

(This was written some time ago, so revise for the new caps.)

 

[watsup]

Is anyone opposed to an increase in the FICA tax to support and fix social security. I'd be fine with a percent or two and an increase of 1 year more to take the benefit.
Any other plan that may work?

Means testing. If their assets are such that they don’t need it, then they don’t get it and save it for someone who does.

 

[WorldWatcher]

Means testing. If their assets are such that they don’t need it, then they don’t get it and save it for someone who does.

Define need?

Are you talking flat amount applicable from Alaska to Florida, Maine to California? Or is need cognizant of different costs of living in different parts of the country?

Should this covering "need" include Medicare B, Medicare D, Medi Gap, co-pays and out of pocket?

How much is your opinion is enough cover "need"?

Will this be a red line amount or a phase in? What's the red line or alternatively what are the break points?

Will these be determined base on assets, non-social security income, a combination?

WW

 

[WorldWatcher]

Means testing. If their assets are such that they don’t need it, then they don’t get it and save it for someone who does.

Oh, and BTW - SS is already means tested in a way.

Make over a certain threshold and 50% of your SS benefit becomes taxable. And the threshold is very low.

Trip and also low very low threshold and the taxable percentage goes up to 85%.

WW

 

[watsup]

Define need?

Are you talking flat amount applicable from Alaska to Florida, Maine to California? Or is need cognizant of different costs of living in different parts of the country?

Should this covering "need" include Medicare B, Medicare D, Medi Gap, co-pays and out of pocket?

How much is your opinion is enough cover "need"?

Will this be a red line amount or a phase in? What's the red line or alternatively what are the break points?

Will these be determined base on assets, non-social security income, a combination?

WW

Withhold Social Security until assets drop below a certain level.

 

[Felis Leo]

Vote out Republicans.
Raise the contribution ceiling.

No, we need to vote out Republicans AND Democrats who vote alongside Republicans and use them as a heat shield.

And we should vote in a Progressive President who will treat the Republicans in government the same way as Trump treats the Democrats: Like the enemies that the they are.