Anyone else worried about SS?

[braumeister]

According to the site, if all wages above $400,000 are taxed that will be 67% of the way to resolving it

That just makes me think there would be a mass changeover to the system used by so many CEOs already. Make their annual salary (earned income) one dollar, and give them the rest in stock options. It would reduce the government's take on their "salaries" by an enormous amount.
I think it's important to remember the unintended consequences of any regulation.

 

[AudiDudi]

Increase retirement to age 68, use highest 38 years of earnings instead of 35, add 2 more bend points at 8% and 4% and remove the earnings cap. Sadly, the time to act was 10 years ago and nothing will take effect, IMO, to prevent a haircut. Any action now most certainly will not affect anyone over 60 and more likely over 55 so will have no effect on the Trust Fund. The Trust Fund will most likely run out. Just my 2c.

 

[youbet]

Increase retirement to age 68, use highest 38 years of earnings instead of 35, add 2 more bend points at 8% and 4% and remove the earnings cap. Sadly, the time to act was 10 years ago and nothing will take effect, IMO, to prevent a haircut. Any action now most certainly will not affect anyone over 60 and more likely over 55 so will have no effect on the Trust Fund. The Trust Fund will most likely run out. Just my 2c.

The weakness in this plan seems to be that the cost falls too heavily on current contributors and not heavily enough on current recipients. We need a plan where low income current contributors are not paying more and waiting longer so that high income current recipients escape any reductions.

 

[badatmath]

Another thread about this? We just had one.

I'm more concerned about the ACA at this point. Hopefully SS will get propped up so that people who rightfully earned those benefits won't receive cuts to their benefits.

I must be the only one who ever worries about them getting rid of Medicare in favor of Medicare Advantage. . .

 

[zaqxsw]

I must be the only one who ever worries about them getting rid of Medicare in favor of Medicare Advantage. . .

Amen... Need a new thread.

 

[badatmath]

Amen... Need a new thread.

I thought about starting one before this but was afraid it would run afoul of "discussing political things that aren't true yet".
But since someone mentioned ACA I thought I was fairly safe.

 

[MC Rider]

ACA is about health insurance.

 

[Texas Proud]

That just makes me think there would be a mass changeover to the system used by so many CEOs already. Make their annual salary (earned income) one dollar, and give them the rest in stock options. It would reduce the government's take on their "salaries" by an enormous amount.
I think it's important to remember the unintended consequences of any regulation.

I think they are taxed as ordinary income and subject to SS... but most who get them are already maxed out for SS anyway...

 

[GenXguy]

I must be the only one who ever worries about them getting rid of Medicare in favor of Medicare Advantage. . .

Either that or some type of contracted or managed care program. There was a past thread on that topic.

People are being switched from traditional Medicare to Advantage plans

This is alarming, patiets are being switched from traditional Medicare to Advantage plans without their permission and doctors are allowed a kickback for doing so according to this article. https://www.levernews.com/seniors-medicare-benefits-are-being-privatized-without-consent/

www.early-retirement.org

Related:

https://thehill.com/blogs/congress-blog/healthcare/585103-the-biggest-threat-to-medicare-youve-never-even-heard-of/

https://boomerbenefits.com/medicare-direct-contracting-dce-what-does-it-mean-for-you/

CMS redesigns controversial Medicare direct contracting model

The decision to retain the direct contracting model — albeit with numerous changes and a new name — was met with mixed reactions from stakeholders.

www.healthcaredive.com

 

[Koolau]

Here is a great website that shows how much various social security 'fixes' will work to prevent insolvency.

Social Security Reformer

According to the site, if all wages above $400,000 are taxed that will be 67% of the way to resolving it and increasing the retirment age to 69 would be 39%. Just those two things alone will be more than enough to solve the issue.

My guess is that it will be a combination approach like this that resolves it and social security will continue as it is. It's a lot easier for politicians to say "Have the rich pay their fair share." and "Raise the retirement age for those who aren't yet near retirement age." than it is to say "Everyone on social security takes a 20% reduction in benefits." The first way only costs them the votes of high income earners and younger people who aren't really dialed in to retirement planning versus costing them the votes of everyone currently on social security.

People who make over $400K can typically find a way to avoid paying taxes. If they can, they will. YMMV

 

[Midpack]

People who make over $400K can typically find a legal way to avoid paying taxes. If they can, they will. YMMV

FIFY. Would you pay more than legally required by the tax regulations our legislators enact? Misplaced blame.

 

[wrigley]

It stinks that people hate on a visionary genius, rather than do something bigger and better themselves.

Couldn't agree more!

 

[dixonge]

Given that the first time anyone predicted Social Security insolvency was *checks notes* -- 1982, I'm not particularly worried. Some will say "but this time it's different" and they will probably be wrong just like every fear of insolvency over the last 40+ years...

 

[MichaelB]

People who make over $400K can typically find a way to avoid paying taxes. If they can, they will. YMMV

It is not at all typical. People with salary and bonus income over $400k pay high average and marginal rates, and many with partnership incomes pay those rates as well. Business owners and sole proprietors have access to tax breaks.

 

[Badger]

It stinks that people hate on a visionary genius, rather than do something bigger and better themselves.

This is getting too close to being political.

 

[Flieger]

I think those were disguised political posts.

This is getting too close to being political.

I couldn't agree more.

Flieger

 

[Taco]

Since cutting the benefits of the lowest earners will cause many to lose their homes, etc. the ONLY other options are raising the SS taxes, *OR* means testing in some form.

…which is to do means testing, and I don't mean cutting "rich people". Anyone getting a benefit above the median will be targeted,

You suggest that only the lowest earners would lose their homes, but I doubt that would be the case.

I think most Americans do not embrace the LBYM lifestyle, but rather “spend what they got, plus some”. So I think that even many of those receiving above the median would also not be able to pay their bills if their SS was cut.

 

[RetiredHappy]

People who make over $400K can typically find a way to avoid paying taxes. If they can, they will. YMMV

No way no how, at least in our case when we were working. We were in the top IRS tax bracket and because of that there were so many things that we had no relief for.

 

[Aerides]

How about we leave Elon out of this discussion, pro or con, or we can just close yet another SS thread?

 

[Koolau]

FIFY. Would you pay more than legally required by the tax regulations our legislators enact? Misplaced blame.

Your point is well taken, Midpack. And, no, I'd not knowing pay more than I have to even if I thought all our tax dollars were well spent (which I don't.)

The "rich" (and many of us here are "rich" by the world's standards) can afford the professional tax and legal assistance to (legally) avoid taxes that most others must pay. I've been there, done that and even got the T-shirt! No guilt (but no pride either.) YMMV

 

[albireo13]

visionary geniuses??
LOL

 

[Flieger]

visionary geniuses??
LOL

Some people just can't help themselves....

Flieger

 

[braumeister]

 

[albireo13]

Everyone is a genius ... in their own minds.

 

[MC Rider]

And everyone is a much much better than average driver.