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Old 07-24-2007, 04:05 PM   #41
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Originally Posted by tryan View Post
Interesting ... I said "eliminate the SS payroll cap" and solved 93% of the problem.

Could it be THAT simple?
I wonder if they are calculating the higher benefits the people would get with the higher contributions??
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Old 07-24-2007, 04:12 PM   #42
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Originally Posted by donheff View Post
It strikes me that means testing social security does a real disservice to just about everybody. Of course, I haven't really thought deeply about it, so feel free to flame me - I have a thick skin :P

In any event, despite all the rhetoric to the contrary, SS has become a RETIREMENT program. Even the Federal government in designing the FERS system identifies SS as the third leg of the government's retirement program (basic DBP, TSP and SS). People need to be able to plan for retirement and means testing disrupts that planning. Pensions, withdrawals from IRAs, pretty much whatever - counting them against SS would destroy the basic concept.
The Dems don't want to means test... once you do that then the next step is to call it welfare... and the next step is to reduce welfare... and the next step is to eliminate welfare....

So, better to have payments to all then cut some today and possibly everybody down the road...
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Old 07-25-2007, 10:18 AM   #43
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I'm not a dem, but I don't want a means test, either. Any means test that saves a meaningful number of dollars will need to impact the middle income workers. For some people, this will eliminate the incentive to save. "Every $1.00 I save will reduce my SS benefit by $0.50. Therefore, I'm better off spending my money today."

It will also lead to all sorts of inefficient games playing -- give your money to your kids and expect them to make gifts to you in later years, buy gold and don't declare it on your "means test form", etc.

The problem is that "getting old" is something we all expect/hope to do. There is plenty of time to arrange your finances (legally or illegally) to avoid the means test reduction.
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Old 07-25-2007, 11:13 AM   #44
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Independent:

Don't count on a rational growth based taxation strategy. They hate anyone with more than than those poor slobs who spent all their money.

You will have to pay your "fair share" and take "what you really need".

You better get used to this logic cause it is inevitable.
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Old 07-25-2007, 11:16 AM   #45
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Actually, there is a means test on medicare already and (sort of ) a means test on SS as there is income testing to determine the taxable rate of your SS income.

At 32K (includes half of SS)for married filing jointly they tax 50%, and 85% for income greater than 44K.
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The reason for the 85% taxation
Old 07-25-2007, 04:17 PM   #46
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The reason for the 85% taxation

is because that is how much more retirees were collecting than they paid in. With that declining drastically over the next decades, I wonder if we will see a decline in it. I doubt it. I also doubt we will see much more means testing than we already have (85% to 100%?) because it wouldn't really save much. (Yes, I believe they did include paying out higher benefits too. The wage cap is where all the money is which is why it is being resisted so desperately.)
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Old 07-25-2007, 04:32 PM   #47
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Actually, there is a means test on medicare already and (sort of ) a means test on SS as there is income testing to determine the taxable rate of your SS income.

At 32K (includes half of SS)for married filing jointly they tax 50%, and 85% for income greater than 44K.
Not quite the same thing.... this is only if it is taxable or not... not that you wil not get any at all... BIG difference..
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