Biden's proposed Social Security Changes and their impact
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@Mik said in Biden's proposed Social Security Changes and their impact:
Was that a Biden proposal? If not, it did not belong in the article.
The article is not a “straight fact” reporting, it has an op-ed component. Towards the end the article mentions other things that are not part of Biden’s proposal (e.g., raising the Social Security tax rate, raising retirement age, means-testing for benefits). I was pointing out that the article missed the possibility of taxing other incomes other than “earned income.”
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Reinstate the payroll tax on earned income above $400,000: In 2023, all earned income (wages and salary but not investment income) between $0.01 and $160,200 is subject to the 12.4% payroll tax,
Stupid. No donut hole. And you also need to stop limiting the upper end on returns. If you put in, you get back. Period.
Switch the inflationary tether from the CPI-W to the CPI-E::
There is no guarantee that CPI-E is higher than CPI-W. Instead, tie it to the higher of the two.
The Brad
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Reinstate the payroll tax on earned income above $400,000: In 2023, all earned income (wages and salary but not investment income) between $0.01 and $160,200 is subject to the 12.4% payroll tax,
Stupid. No donut hole. And you also need to stop limiting the upper end on returns. If you put in, you get back. Period.
Switch the inflationary tether from the CPI-W to the CPI-E::
There is no guarantee that CPI-E is higher than CPI-W. Instead, tie it to the higher of the two.
@LuFins-Dad said in Biden's proposed Social Security Changes and their impact:
And you also need to stop limiting the upper end on returns. If you put in, you get back. Period.
Dunno. It's probably that, or a means test. With the latter, an individual might get cut all the way down to $0.
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Reinstate the payroll tax on earned income above $400,000: In 2023, all earned income (wages and salary but not investment income) between $0.01 and $160,200 is subject to the 12.4% payroll tax,
Stupid. No donut hole. And you also need to stop limiting the upper end on returns. If you put in, you get back. Period.
Switch the inflationary tether from the CPI-W to the CPI-E::
There is no guarantee that CPI-E is higher than CPI-W. Instead, tie it to the higher of the two.
@LuFins-Dad said in Biden's proposed Social Security Changes and their impact:
Stupid. No donut hole. And you also need to stop limiting the upper end on returns. If you put in, you get back. Period.
That would rather defeat the purpose of the increase.
“I am fond of pigs. Dogs look up to us. Cats look down on us. Pigs treat us as equals.” ~Winston S. Churchill
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Increase the special minimum benefit: For lifetime low-earning workers with at least 30 years of coverage, the maximum benefit in 2023 is a mere $1,033.50 per month. That's well below the federal poverty rate for a single individual of $1,215 per month. President Biden proposes raising the special minimum benefit to 125% of the federal poverty level.
No real problem with that. Except that a lot of this is so region specific. Even $1500 in this area is untenable. I can probably get buy on $1500 in western PA pretty well…
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The donut hole is unconscionable. A gift to the core democratic voting block of the mass-affluent.
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@LuFins-Dad said in Biden's proposed Social Security Changes and their impact:
Stupid. No donut hole. And you also need to stop limiting the upper end on returns. If you put in, you get back. Period.
That would rather defeat the purpose of the increase.
@Mik said in Biden's proposed Social Security Changes and their impact:
@LuFins-Dad said in Biden's proposed Social Security Changes and their impact:
Stupid. No donut hole. And you also need to stop limiting the upper end on returns. If you put in, you get back. Period.
That would rather defeat the purpose of the increase.
@Mik said in Biden's proposed Social Security Changes and their impact:
@LuFins-Dad said in Biden's proposed Social Security Changes and their impact:
Stupid. No donut hole. And you also need to stop limiting the upper end on returns. If you put in, you get back. Period.
That would rather defeat the purpose of the increase.
I’d like to see the numbers… but nobody should be putting in more than they will be getting back later…
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@Horace said in Biden's proposed Social Security Changes and their impact:
One wonders if it would have passed otherwise.
Who knows. I understand their motivation, they don’t want to (visibly) raise taxes on anyone making under 400k. But the effect given that the cutoff is there already is obscene.
"You never know what worse luck your bad luck has saved you from."
-Cormac McCarthy -
Wait, did it pass? I didn’t see that…
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@Horace said in Biden's proposed Social Security Changes and their impact:
One wonders if it would have passed otherwise.
Who knows. I understand their motivation, they don’t want to (visibly) raise taxes on anyone making under 400k. But the effect given that the cutoff is there already is obscene.
@jon-nyc said in Biden's proposed Social Security Changes and their impact:
@Horace said in Biden's proposed Social Security Changes and their impact:
One wonders if it would have passed otherwise.
Who knows. I understand their motivation, they don’t want to (visibly) raise taxes on anyone making under 400k. But the effect given that the cutoff is there already is obscene.
Why $400K? 3 years ago it was the $250K group that were evil…
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Excuse my ignorance, but what is the donut hole? It's not a term I'm familiar with.
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Excuse my ignorance, but what is the donut hole? It's not a term I'm familiar with.
@Doctor-Phibes said in Biden's proposed Social Security Changes and their impact:
Excuse my ignorance, but what is the donut hole? It's not a term I'm familiar with.
It's the part of the donut they cut out, making a small round donut. They are typically sold by the dozen at donut shops.
Education is extremely important.
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So today social security tax is only paid on your first 160k or so of income (too lazy to Google).
So you pay 6% (between you and your employer) of the wages up to that number and nothing after.
There have been proposals over the year to remove the cap so everyone would pay the 6% on their entire income.
This proposal would reintroduce the tax only on marginal income over 400k.
The the result would be that people making between 160-400 essentially have an exemption from a marginal tax that those above and below have to pay.
"You never know what worse luck your bad luck has saved you from."
-Cormac McCarthy -
So today social security tax is only paid on your first 160k or so of income (too lazy to Google).
So you pay 6% (between you and your employer) of the wages up to that number and nothing after.
There have been proposals over the year to remove the cap so everyone would pay the 6% on their entire income.
This proposal would reintroduce the tax only on marginal income over 400k.
The the result would be that people making between 160-400 essentially have an exemption from a marginal tax that those above and below have to pay.
@jon-nyc said in Biden's proposed Social Security Changes and their impact:
So today social security tax is only paid on your first 160k or so of income (too lazy to Google).
So you pay 6% (between you and your employer) of the wages up to that number and nothing after.
There have been proposals over the year to remove the cap so everyone would pay the 6% on their entire income.
This proposal would reintroduce the tax only on marginal income over 400k.
The the result would be that people making between 160-400 essentially have an exemption from a marginal tax that those above and below have to pay.
Ok thanks. That seems kind of cynical
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@Doctor-Phibes said in Biden's proposed Social Security Changes and their impact:
Excuse my ignorance, but what is the donut hole? It's not a term I'm familiar with.
It's the part of the donut they cut out, making a small round donut. They are typically sold by the dozen at donut shops.
@Horace said in Biden's proposed Social Security Changes and their impact:
@Doctor-Phibes said in Biden's proposed Social Security Changes and their impact:
Excuse my ignorance, but what is the donut hole? It's not a term I'm familiar with.
It's the part of the donut they cut out, making a small round donut. They are typically sold by the dozen at donut shops.
Baker's dozen, or senility? I can't tell which I suffer, I just chomp away. Anyway, I'm glad SOME nice person answered Phibe's question.
