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They max out because the benefits max out. IN THEORY, your SS and worker's comp payments pay for your own benefits, as if an insurance company was calculating o
by zlynx 8y ago
They max out because the benefits max out. IN THEORY, your SS and worker's comp payments pay for your own benefits, as if an insurance company was calculating odds and investing the money.
In practice of course it is politically easier for government to borrow the money and spend more than income, until Greece happens.
Anyway, charging high-income employees more for SS and then paying them less on retirement would ruin the illusion that it is a retirement plan and not simple theft from the future.
- Latteland 8y agoWell, by that standpoint all taxation is simple theft from the future, because you might die and get no benefit from it. Social security and medicare serve a social good. I knew that the idea behind not taxing me past the max was because I couldn't get more benefits. But I already have exposure to many other tax credits that poor people don't get, because they aren't able to make investments. I agree with your comment that it's easier to borrow the money. Look at our current government, that was supposedly fixated on budget deficits then when Obama is gone they pass a giant tax cut, increase the deficit (with the wish and a prayer that the deficit would go away), and now that there's clearly going to be a much larger deficit their answer is not cancel or reduce the unneeded tax cut for rich people - they want to cut benefits - this was all predicated before the tax cut.