SS File and Suspend to End?

[Neill]

Back in the day, I would reach my SS limit sometime around early March. Despite my normal aversion to taxes, I always thought it was unfair and never understood the rationale, but hey, an extra few bucks a week, so.....

I would not have minded paying the tax throughout the year. At the time it was small potatoes for me and if it helped, well....

I have 17 years where I hit the cap. I didn't want 1 extra penny to go from my income into this crazy savings plan. I get WEPed and I guess my wife with get the GPO. I quit at 50 because I couldn't stand giving then 39.6% + 1.45%*2 + 0.9% on the high end. Add 12.4% on top of that would be a no brainer for quitting. I'll be taxed at 85% if I got anything out and the returns are pathetic. If I had gotten into the second bend point things would look even more bleak.

This passed last night and goes to the president for signing.

 

[Independent]

My objection with expanding SS tax to investors as you suggest is that it would then violate the historical notion that SS is a ring fenced system.

I don't like the idea of "ring-fenced", so I have no problem with supporting SS with taxes on all types of income.

In the 1930s, Francis Townsend promoted an idea of $50/week for every retiree, funded by a national 2% sales tax. I think that was a decent idea.

In today's world, maybe $1,000/month, funded by general revenue.

 

[W2R]

Thanks, all.