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View Diary: Why Grandma Will Be At The Door, Suitcase In Hand (168 comments)

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  •  Not a good idea. (0+ / 0-)

    1. Many at the top don't even pay FICA because they don't receive "wages".
    2. SS is a proportioned plan, what you put in (in the form of FICA taxes) determines what you receive when you become eligible (subject to various formulas).
    Currently, I don't think there is any minimum floor on payments from SS, but there is a maximum amount linked to that cap of $106K, based on lifetime yearly income.
    If you take the cap off (or make it very high), those paying in on with greater wages will receive much higher payouts when they begin drawing benefits (and they are more likely to receive those benefits, and for longer periods due to better health care, longevity, and status).
    I think the current maximum SS payment is around $25K/yr based on current and previous caps.
    If the formulas remained the same, someone with a multi-million dollar income, paying a FICA tax on it all, would upon retirement receive tens/hundreds of thousands of dollars monthly as a benefit (and have a higher chance of getting it than most).
    Don't think this would work out too well.

    "Double, double, toile and trouble; Fire burne, and Cauldron bubble... By the pricking of my Thumbes, Something wicked this way comes": Republicans Willkommen auf das Vierte Reich! Sie Angelegenheit nicht mehr.

    by Bluefin on Wed Jun 01, 2011 at 12:34:45 PM PDT

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    •  Actually I mean continue (0+ / 0-)

      with the current cap on the actual payout.  Let them pay in more to  contribute to the care of the old and infirm.  

      It gets on my nerves, and you know how I am about my nerves...

      by ciganka on Thu Jun 02, 2011 at 10:17:01 AM PDT

      [ Parent ]

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