Mike wrote:
"Robert M. Gary" wrote in message
...
On Jun 30, 2:35 pm, "Mike" wrote:

Unfortunately, SS has been expanded over the years and the
elgibility age
hasn't been raised to reflect the reality of people living longer.
The SS
maximum income level also hasn't kept pace with increases in
income, and the
whole trust fund idea is a disaster.

The reason the max income level hasn't increased as fast is because
the max payout has been reduced. Incomes over that amount don't
contribute to increased future distributions. Allowing people to pay
into SS at higher income levels than they can ever collect on totally
throws out the idea that its a "savings" plan as sold by FDR.
In anycase, if they cut the SS tax in 1/2 by allowing people to opt
out of ever collecting on it people would retire with several times
more money by investing the saved 1/2. However, that doesn't allow
the gov't control over your money so it will never fly.

FDR never billed it as a "savings plan" to begin with.

You might want to look up what the "I" in FICA stands for. I'll give
you a hint. It's the same thing as the "I" in OASDI.

The max payout has never been reduced. The max payout is capped by
contributions as it's always been and the payout rate is reduced at
higher contribution levels, but again this is always as it has been.

Looking at SS as a "savings plan" and allowing people to "opt out"
defeats the entire intent of the program.

For an economic expert, you sure are ignorant about a lot of things.


Why don't you demonstrate your expertise by answering the question below?


Mike wrote:

I guess your reading comprehension skills aren't all that great. Obama
proposes raising the SS maximum income level, which is
currently $102,000 which affects less than 5% of the population. The
payroll tax rate would remain the same. And you claim to be an
economic expert?


Seems to me if a larger income level is subject to the same tax rate a
higher net tax is the result. Do you disagree?