What happens to *future* social security contributions?

[freedom fighter jh]

If, as many fear, the budget deal includes cuts to Social Security, I suppose that means money gets diverted from the Social Security trust fund to balance the budget.

The money in the Social Security trust fund comes from a special tax. It is a regressive tax, in that those who earn more than $106K per year pay social security tax only on the first $106K, so the higher your income (beyond $106K) the lower the percent of it you pay in social security tax. Almost everyone who earns money pays it. Self-employed people, like me, pay about 15% of our income to it.

It's bad enough that money that was paid for a specific set of purposes is being diverted to the general budget, which means, in part, to pay for war instead of insuring our retirement.

But then what will happen to the structure of the social security program? Will the tax structure remain the same, with those of lower income paying a higher percentage of their income than those of higher income, now including some contributions to the general budget? That would be hideous, the wealthy getting a free ride on the backs of those of modest income, including some who are really poor.

[Skink]

1. Since more income comes from investments then ever before

we should look at taxing dividends and capitol gains to fund social security. I'm not saying replace the payroll tax, but Obama is on the right track suggesting the payroll tax kick back in after 500,000.

[freedom fighter jh]

2. Did Obama suggest that the payroll tax kick back in after $500K?

I agree that that's a good idea.

[Skink]

5. I'm pretty sure I heard that.

:beer:

[RC]

3. What we really need to do is to get our Living Wage Jobs back into this country.

Those Living Wage jobs is what kept Social Security solvent.

[freedom fighter jh]

4. Yes, we need living wage jobs.

But social security should not have any trouble staying solvent for a couple of decades or so even if those jobs don't come back.