Social Security tax upper limit

[Bayfieldgopher]

The ceiling for 2008 is $102,00 and will increase to $106,800 in 2009.

Changes to SS/Medicare have been debated extensively in the past. Did Congress ever consider raising the ceiling to a much higher amount? That would certainly generate more $$ paid into the SS fund and possibly restore SS fund beyond current projections.

I have never exceeded the ceiling thus I feel I have certainly "earned" my monthly SS check. There is a part of me that says that those that earn over the ceiling should be expected to pay a greater share. Along with their employer. But that would certainly pose and added burden on many business's that will soon be Obama targets.

I wonder if Obama will go there. But that would go hand-in-hand with his plan to increase taxes on the wealthy and business's.

SS is a flat tax that is not scheduled to change until at least 2012 under the current tax laws.

[Schnoodler]

As a tax, it's regressive. Which is problematic. But philosphically it's not a tax, more of a forced retirement account. So it's problematic from that point as well. Personally I find the whole notion of SS to be antiquated. It's time we just consider our seniors a gift and thank them for their role in growing this great nation with a decent stipend.

[bga1]

Obama has talked about it and would like to do it. If he does it will only add to the disaster at hand. Hopefully, he will listen to those who counsel him to the effect that any further taxes on businesses in the next year will cost jobs.

Something like this should happen: The government should announce that social security is being gradually phased out. If you are under thirty you will get nothing. If you are 30 to 40 you will get 50-60% of what had been promised. You pay in the full amount until you are 55. If you are 41-50 you get 75% and you pay in until you are 60. At 51-60 you get 90% and you pay in as long as you work. Over 60 and you get the previously promised deal.

[freshtrout]

It is important to remember that SS is more than just a quasi retirement savings plan. There are benefits for disability, survivor benefits, and Medicare.....

[bga1]

With the reduction in payroll taxes people could easily afford basic disability and life insurance that would match what the government has been offering. The problem with social security is that it lulls people into thinking that they don't have to plan ahead for death, disability and retirement.

[Schnoodler]

And that BGA is why I favor eliminating SS in favor of a stipend or reverse tax if you want to use means testing. Dropping SS while it would necessarily increase payroll taxes would reduce the overall burden of taxation on business and working people. I'm guessing something like a 3% increase in payroll taxes across the board would be more than enough to eliminate the need for the SS tax. Imagine the reduced burden to businesses that are volume heavy and margin low. (a lot of employees)

[Costa Rican Gopher]

I believe the Social Security, Medicare and retirement in general will look a lot different in 10 years than most imagine it today. A neighbor here in CR works with a large multi-international investment group and they have a contract in hand to build hospitals here in CR for Medicare retirees. He says US seniors will be encouraged to move here (and other foreign countries) and they'll get state of the art treatment at a fraction of the cost to Medicare thanks to to good bilingual doctors here in CR.

[grunkiejr]

The ceiling for 2008 is $102,00 and will increase to $106,800 in 2009.

Changes to SS/Medicare have been debated extensively in the past. Did Congress ever consider raising the ceiling to a much higher amount? That would certainly generate more $$ paid into the SS fund and possibly restore SS fund beyond current projections.

I have never exceeded the ceiling thus I feel I have certainly "earned" my monthly SS check. There is a part of me that says that those that earn over the ceiling should be expected to pay a greater share. Along with their employer. But that would certainly pose and added burden on many business's that will soon be Obama targets.

I wonder if Obama will go there. But that would go hand-in-hand with his plan to increase taxes on the wealthy and business's.

SS is a flat tax that is not scheduled to change until at least 2012 under the current tax laws.



Bayfield-I have made more than the ceiling and I feel like I worked very hard for the money whether it was at school (U of M) or working 60-70 hours/week when I entered the work force. I contribute to my own 401k, IRA, and I'm forced to do Social Security even though I know the rate of return they earn is well less than I would expect to earn if I invested the money myself. Now you want to tell me that it is wrong for me to bear the fruits of my labor and you want to increase my payments to SS while maintaining my future benefits. I'd rather take personal responsiblity for my future than having big brother tell me how much needs to be set aside and redistributed.

The whole system is ridiculous and it is just one more example of FDR putting in bad policies because he didn't want to or have to plan for the future. This infamous policy was topped only by LBJ adding Medicare in the 1960's. The New Deal did not take us out of the great depression, it only lengthened it. WWII is what finally took us out of the Great Depression. FDR's & LBJ's policies are a part of why are government is in so indebted today.

Rather than forcing me to pay more in taxes I prefer to give thanks for what I have been given by giving back be it with donations for scholarships at the U of M or to those less fortunate than that.

[diehard]

It's good to see that Obama has dropped his proposal to increase taxes on the 'rich.' The Bush tax cuts will stand. The economy just can't stand to have increased taxes imposed on the job creators. No wonder the liberal bloggers are all over him.

[Schnoodler]

It's good to see that Obama has dropped his proposal to increase taxes on the 'rich.' The Bush tax cuts will stand. The economy just can't stand to have increased taxes imposed on the job creators. No wonder the liberal bloggers are all over him.

He hasn't agreed to anything. the question isn't about keeping them, there has been zero talk of making them permanent. The question is if he'll overturn it or simply let it expire on it's own.

[diehard]

He isn't snuffing them early. He is no fool. This is a work in progress. They will become 'permanent' under Obama. He is moving quickly to install the most prominent members of the TLC into his cabinet and other high level appointments. He is going to be Bill Clinton without the huge learning curve and with very aggressive State and Defense Departments. He plays the political game to win like no one we have seen before. No one, with a brain, will complain if change works quickly enough. For all who decried he was the most liberal member of the Senate are going to be very disappointed in his Presidency. This looks to be a huge upgrade from Bush, too bad the country is such a mess.

[playhosea!]

Social security withholdings are regressive, which is incongruous with the rest of our tax code, but I do love one thing about the current system:

If you have ever been fortunate enough to earn all the way through the social security ceiling in a year, your paychecks after hitting the limit jump up noticeably after the ceiling is reached. Most people (or at least me) budget based on "regular" weekly/monthly/bimonthly paychecks, so it's almost like "found" money for the remaining part of the year when you are allowed to keep that 6.2% for yourself.