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Social Security Reform
posted at November 2, 2013 3:34 PM EDT
Re: Social Security Reform
posted at November 3, 2013 11:35 AM EST
First: November 27, 2011
Last: March 8, 2014
In Response to Social Security Reform:
The Social Security wage base is way too low, at $110K. The effect of this is that people with big salaries that could afford to pay more into the program are relieved of responsibility to do so. Thus the people who earn less than $110K have to carry the program. This is just not right. Congress could fix this injustice by raising the wage base to a more equitable level, say the first $250,000of earnings. To remove the burden on small busines and to stimulate hiring, leave out completely the 7.5% for employers with 50 employees or less. Have the 7,5% match start with employers with 51 employees. This program would ensure SS solvency for future generations. It is totally assinine and a betrayal of the public trust to use the present social security payment structure as a bargaining chip in a budget deal. What are these bozos thinking?
Posted by fs5016
The 2013 wage base is now $ 113,700 - 2014 is estimated to be $ 115, 500 but could be up to $ 117,000.
Changing the wage base level without changing the benefit calculation would not accomplish much.
Congressional Research Service Social Security: Raising or Eliminating theTaxable Earnings Base Sept.2010
However changing the wage base to coinside with the historic levels of income would raise the base to $ 200,000+ -
But it might really affect employment and spending, which is needed for our economy to continue to puddle along - not just business spending but also those who would be paying more into the system; i.e. the ones who now can spend money in a less impeded manner.
I don't think your idea would work about not including some smaller businesses - you would find that employers would just modify their workforce if they were close to the top limit of employees. Then there are those legal ways of establishing subsidaries of businesses or even franchise development.
Another way would be to remove the employer health insurance tax expenditure or requiring payroll taxes to be assessed on these benefits since they are just another form of compensation to employees.
As always, for every action there is a reaction and the devil is in the details.