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View Diary: Take Social Security off the table (159 comments)

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  •  There is no upper limit. That would be a welfare (0+ / 0-)

    program, and SS is not a welfare program.

    SS replaces income at - I think - 11% for the highest 'bracket' (it may be 15%; check it out on ssa.gov - I haven't time now).  This has to do with the 'bends' in benefit calculation. So if someone makes $500k/month and pays FICA on it, his/her retirement benefit will indeed exceed $50k/month - for every month he/she lives ...

    If you are arguing that SS should collect taxes on some income but that that income should be irrelevant to benefit calculation - then you are making SS a welfare program. Why not collect that tax as income tax - which it is - and use it as 'general revenue' to supplement Social Security where necessary? In other words, why declare it SS when it is outside the principle of the program? Because when SS becomes just another welfare program, like food stamps, then Congress can futz with reimbursements every damn budget year and is not constrained by formulas.

    FDR designed SS as an income-replacement program. It works great. Why confuse it with programs designed on different principles?

    Am I right, or am I right? - The Singing Detective

    by Clem Yeobright on Tue Nov 13, 2012 at 02:47:07 PM PST

    [ Parent ]

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