Independent
Thinks s/he gets paid by the post
- Joined
- Oct 28, 2006
- Messages
- 4,629
Yes, in an alternate universe where it's politically possible to be honest and say the employee pays both halve, tax brackets, ACA subsidies, food stamp formulas, etc would all need to be adjusted.Some interesting thoughts here: first, if employers simply paid their share of the SS tax to employees it wouldn't be zero-sum: employees would now pay both halves of the tax out of taxable income. Round numbers: let's say the total SS contribution is 14% and you make $50K per year. Right now, you pay $3,500 to SS and your employer pays another $3,500. If your employer raises your pay to $53,500 and then takes the total $7,000 out of your gross pay, you just got stuck with another $3,500 in taxable income.
On spousal SS: we HAVE to have something. I have a wonderful DDIL who's a full-time Mom for my delightful granddaughter (and another on the way) and she has very little earnings record on her own. We can't have a system that leaves full-time parents and other caregivers with nothing as they age. I like the idea of splitting a married worker's SS contribution and putting half of it on a spouse's record with an accrual formula (possibly increasing their % contribution to do so).
There will still be losers, though. I've been married 26 out of the last 32 years so, in theory, have been paying for Spousal benefits all my life. So did my previous and current husband. I remarried at age 50 so had no claim on the Ex's SS. Neither did his first wife, who was able to collect on her own record (precious metals chemist with an armload of patents). DH is unlikely to live till I reach FRA at age 66 (just diagnosed with acute myelogenic leukemia and he's 78). I may get Widow's benefits for a few years but will collect my own SS at 70. And no one will collect Spousal SS on me. If I outlive DH I'm open to the possibility of the companionship of a good man but not marriage.
The spousal proposal is to split the earnings record, no need to accrue anything. All the complications in your last paragraph just disappear. There wouldn't be a widow's benefit, you'd get a regular retirement benefit based on your earnings record - which would include half your spouse's earnings and half your earnings in those years when you were married.