Let's push for doing away with the "glass ceiling" on FICA tax. Everyone should pay on 100%

[peacebird]

Right now you are taxed on only the first $108,600 of your salary. In other words - MOST of us are taxed for FICA on 100% of our salary. However doctors, lawyers, upper level managers, CEO's etc earn FAR MORE than 108,600 and could easily continue paying FICA on the rest of their salary. That would have to help the solvency situation of Social Security, right? AND it would be FAIR. We could all pay on 100% of our salary, not have someone earning 1/2 a million only paying on onefifth of his salary....

I think we should all call congress and the WH, and write our newspapers! Make this happen! Why is it Simpson Bowles etc only see draconian cuts as the way forward, and do not even CONSIDER this idea?

edit for boneheaded mistake of using "ssi" instead of "fica"

[valerief]

1. Duh. Of course that should be done. And Congress should pass START and end the WARS.

Happy holidays.

[peacebird]

4. may I assume you will be calling congress to tell them?

Because a groundswell is what is needed to move them.

and happy holidays to you too.

[valerief]

8. I have. And I've written. I call again tomorrow. nt

[peacebird]

9. : ) good, me too. Thanks!

[DURHAM D]

2. Might be a good idea but you won't be in the room.

The WH (Obama, Biden, Summers, Geithner) only meet with Republican leaders to discuss tax policy - no Dems of any type.

[REP]

3. Know your acronyms. SSI = Supplemental Security Income and is not Social Security

[peacebird]

6. my bad! thanks - fixed for FICA.... oh and the glass celiing is 106,800...

[ddeclue]

5. disagree. its social security.. i.e. the minimum safety net

It is not intended to replace an actual retirementpension just assures you don't eat cat food and live outdoors. If you remove the ceiling then it becomes an out and out welfare program that will draw opposition. Same if you means test. I would go along with raising the ceiling to a million dollars however.

[peacebird]

7. Simpson Bowles and others have called for severe cutbacks in service and raising retirement age

I think this is wrong. If we don't get out of the way the younger folk can't advance up the ladder. I don't believe social security should be a retirement, but it is (and should be) a safety net for people. I would raise the ceiling to ever dollar you earn. If not - how is it fair? If I pay on 100% of the salary I earn, why should Bill Gates get off at 106,800?

[ddeclue]

10. because both you and bill gates are capped out to the same maximum benefit.

It is a safety net only and the amount paid is designed to cover only so much. Why should BG have to pay 100 million dollars into the system every year when he would only get a tiny fraction back at retirement? It violates the principle behind SS. Should he pay more on income tax? YES. Social Security shouldn't have the cap removed however.

[peacebird]

12. so I should have to pay on 100% of my income and Bill Gates only on less than 10% of his?

Regardless of the fact that he can likely afford to pay on 100% of his income easier than a lot of lower and middle class folks can on theirs?

Social security cap SHOULD be removed. It is a safety net for less fortunate, society should take care of its people... or would you rather "let them eat cake" (or cat food....) "Take care of themselves".... After all "are there not POOR HOUSES?!?"

good grief. ddeclue = scrooge.

[ddeclue]

16. not a scrooge. you just dont understand the purpose of SS.

I'm happy to raise his income tax rate to 70% just not remove the SS cap.

[badtoworse]

24. ddeclue has it exactly right - Social Security is not welfare

[Gaedel]

25. Bill Gates probably has no "income"

He is retired and lives off of his investments.

Doctors and lawyers will incorporate and pay themselves a nominal "salary" for social security purposes. The profits then of the corporation are "dividends" and not wages/salary.

[mopinko]

17. you and i get this. i think that is about it.

if it becomes a welfare program it will go the way of the "reform of welfare as we know it". the reason that there is so much push back on the attacks has to do with people's understanding that it is their personal insurance policy, just like it was state farm. make it a hand out, and all that ends. and how many people would be too proud to take that check, and too proud to stick up for the program?
ted kennedy fought this idea with his whole heart and soul. think about that.

[peacebird]

18. "make it a handout" ? How? By making everyone pay FICA on 100% of their salary? That is a "handout"?

NO.
That is everyone paying an equal amount IN. Everyone pays on 100% of their salary.

Simple fact is those earning more would pay more - yes. But the cutoff at 106,800 means that those who earn LESS pay proportionally a LOT more now and they can least afford it. Everyone should pay on 100% of what they earn, trust me - the rich will find loopholes.

[mopinko]

19. everybody pays an equal amount now- the max.

and nobody gets a bigger check than the max. will you be happy to see bill gates getting a 6 figure check? people get back based on what they pay in. if you remove the cap, but do not remove the cap on benefits, it isn't insurance any more. it is welfare- the rich supporting the poor.
i don't have anything against welfare. but a lot of people do. and they will take the program down because of it.
listen to teddy.

[peacebird]

20. the repukes already want to take it down, and Simpson Bowles want to gut it

the max brought in should be a % of salary earned.
My father paid in all his life and never collected (died at 63), so did his 9 siblings (all died by 65)

While I am happy that is helps my mother, I do not expect to get anything real myself, just would like a way to get affordable health insurance so I can retire at 60 without worrying about losing our house if a medical problem arises. My brother and his wife are grateful for health care reform because it let them get her coverage after being denied by other insurers. It is expensive - but they don't have to worry about losing everything if she gets sick or hurt.

[mopinko]

21. my father never made it to retirement, but

he collected disability, and that helped me through college, and kept the roof over our heads. it's insurance, not a savings account. i pay my car insurance but i have only had a couple little fender benders in my life. lot of money down the drain if you want to look at it that way.
if ss was car insurance, you would be advocating for allowing millionaires to insure their ferraris in a program that is meant to keep folks insured in their station wagons.
that is the point you are missing. it is meant as a baseline thing. a safety net. you are making people save for their future. people who are already rich don't need to be forced to save for their retirement. they should get (and pay for) the same simple safety net as everybody else. that is the way it is supposed to be.

[PBS Poll-435]

11. Don't EVER use the phrase "glass ceiling" unless you are taliking about equal pay for equal work

:grr:

[peacebird]

13. as a 53 y.o. woman who has never earned what my fellow male engineers earned, i understand

But - aside from disagreeing over the adjective used - what do you think of the meat of my suggestion?

[PBS Poll-435]

14. Worst part is..

Is that your argument makes sense, is airtight, and right.


I am sorry for being so quickly reactive.

[peacebird]

15. no worries, my friend! I understand.

:hugs:

[Kaleva]

22. Look at the name. Federal Insurance Contributions Act (FICA) tax.

Social Security is a federally mandated insurance program that provides protection for those who pay into into it from death from starvation or exposure to the elements. Removing the cap would be like forcing some to pay $100,000.00 for a life insurance policy that pays out $10,000.00 (after taxes).

[HopeHoops]

23. I've been saying that for MANY long years. I pay it on all of my income.