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That depends on your view of social security. It may become more of an issue if contributions become a progressive tax (no payroll income cap.)
by 1123581321 4y ago
That depends on your view of social security. It may become more of an issue if contributions become a progressive tax (no payroll income cap.)
- lotsofpulp 4y agoI assume they already are. Not just from explicitly benefit reductions like increasing the retirement age, but also the decreasing purchasing power of a dollar (inflation) outpacing any cost of living adjustments. I still have 35 years to go before I can collect, but I expect the demographics will be so tilted by then, that I will see little benefit from Social Security.
- 1123581321 4y agoIn the sene that SS is a broken pyramid model that depends on short retirements and population growth, yes. However, this is not a problem the US is willing to contemplate as they would removing the payroll cap, which would become a significant national conversation. Inflation, not so much an issue, since benefits and maximum contributions receive COLAs and theoretically wages are inflating at pace with CPI.
- dragonwriter 4y agoNo payroll tax cap would make contributions a flat, not progressive, tax.
- 1123581321 4y agoIt would make it progressive because those proposals do not lift the benefits cap (most of them don't, at least.) But I do understand what you're saying about the flat percentage of tax taken out per dollar of income.