Should FICA Income Limit be Raised/Removed?

Discussion in 'Politics' started by InTheLight, Mar 24, 2014.

  1. InTheLight

    InTheLight
    Expand Collapse
    Well-Known Member

    Joined:
    Dec 17, 2010
    Messages:
    16,270
    Likes Received:
    619
    Current tax law for 2014 caps the amount of income exposed to the FICA payroll tax at $117,000. Workers are taxed 6.2% on all income up to $117,000. Thereafter, any income over $117,000 there is no more FICA tax collected. (There is no similar ceiling on Medicare taxes.)

    In an effort to shore up the FICA (social security) program should the income limits be raised, say to $150,000? If not $150,000, what is your number? Or what about completely removing the limit, so any income would be subject to FICA payroll taxes?
     
  2. Revmitchell

    Revmitchell
    Expand Collapse
    Well-Known Member

    Joined:
    Feb 18, 2006
    Messages:
    38,386
    Likes Received:
    790
    If they want to shore up fica they need to stop using it for things not related to SS. The American people do not have one more penny to give.
     
  3. TCassidy

    TCassidy
    Expand Collapse
    Administrator
    Administrator

    Joined:
    Mar 30, 2005
    Messages:
    12,238
    Likes Received:
    1,321
    1. Remove the cap.
    2. Means test all payments.
    3. Base payments on how much was paid in.

    Problem solved. The SS Trust Fund will remain solvent for several hundred years.
     
  4. InTheLight

    InTheLight
    Expand Collapse
    Well-Known Member

    Joined:
    Dec 17, 2010
    Messages:
    16,270
    Likes Received:
    619
    This would certainly fix it. It is also a "soak the rich" strategy.
     
  5. TCassidy

    TCassidy
    Expand Collapse
    Administrator
    Administrator

    Joined:
    Mar 30, 2005
    Messages:
    12,238
    Likes Received:
    1,321
    Soak the rich? Why? I am not rich and exceeded the cap almost every year since I was 30.
     
  6. InTheLight

    InTheLight
    Expand Collapse
    Well-Known Member

    Joined:
    Dec 17, 2010
    Messages:
    16,270
    Likes Received:
    619
    Right now, FICA taxes stop being collected at $117,000. If you are going to remove the ceiling then all income will be taxed for FICA. So wealthy people will be paying a disproportionate amount into FICA and getting little in return, especially....

    If you are going to have means testing than wealthy people will not receive social security benefits, or will receive reduced benefits. Pay in all those years on all income and get little or no payout.

    I will say this--the FICA tax is an example of a flat tax, so flat tax proponents (theoretically) shouldn't have a problem with removing the income ceiling.
     
  7. thisnumbersdisconnected

    thisnumbersdisconnected
    Expand Collapse
    New Member

    Joined:
    Apr 11, 2013
    Messages:
    8,448
    Likes Received:
    0
    FICA should be rendered obsolete by completely revising SS so it is self-sustaining and a private investment vehicle. Take the money, automatically deposit it in mutual funds, the stock market, gold ... I don't care what. Fire the administrators, the fiduciaries (ha! Look on their payroll -- they don't have any! ) -- just get that money out of the federal government's greedy little paws.
     
  8. carpro

    carpro
    Expand Collapse
    Well-Known Member

    Joined:
    Oct 14, 2004
    Messages:
    20,947
    Likes Received:
    297
    The best way to "shore up" SS is for the government to stop stealing the money.
     
  9. OldRegular

    OldRegular
    Expand Collapse
    Well-Known Member

    Joined:
    Nov 21, 2004
    Messages:
    22,678
    Likes Received:
    53
    They been stealing it for the last 50 years so it is too late.

    With only 2 paying in for each baby boomer retiring it may be that, realizing the baby boomers did nothing while one third of those who would pay their SS were slaughtered before birth, there will be a rebellion against paying the tax leaving the BB's financially short.

    A little poetic justice!
     
  10. FollowTheWay

    FollowTheWay
    Expand Collapse
    Member

    Joined:
    Jan 25, 2013
    Messages:
    467
    Likes Received:
    4
    I'd add to that don't pay social security to multi-millionaires. The program was originally intended to be a safety net for the middle class.
     
  11. Salty

    Salty
    Expand Collapse
    20,000 Posts Club
    Moderator

    Joined:
    Apr 8, 2003
    Messages:
    22,132
    Likes Received:
    221
    If multi-millionaires are not to recieve Social Security payments, then why should they pay into the system?
     
  12. InTheLight

    InTheLight
    Expand Collapse
    Well-Known Member

    Joined:
    Dec 17, 2010
    Messages:
    16,270
    Likes Received:
    619
    That's what #2 aims to accomplish.

    2. Means test all payments.
     
  13. North Carolina Tentmaker

    North Carolina Tentmaker
    Expand Collapse
    New Member

    Joined:
    Sep 19, 2003
    Messages:
    2,355
    Likes Received:
    0
    You might want to look at your definition of "Rich."

    The US Census Bureau (linked here)

    http://quickfacts.census.gov/qfd/states/00000.html

    Gives the average per capita income in the US for 2012 at $28,051. FICA is collected on the first $117,000. If you reach that (and have for several years) then you are earning at least 4 times the average.

    Rich and Poor are of course comparisons, but your doing a lot better than me brother. Not that I hold it against you, wish I could do the same.
     
  14. Salty

    Salty
    Expand Collapse
    20,000 Posts Club
    Moderator

    Joined:
    Apr 8, 2003
    Messages:
    22,132
    Likes Received:
    221

    Why?

    I have a better ideal!

    Lets tax everyone @ 100% of income and then equally divide the total amout among everyone! -and dont forget the illegal immigrants- and naturally everyone in jail should get part of the pie as well--
     
  15. TCassidy

    TCassidy
    Expand Collapse
    Administrator
    Administrator

    Joined:
    Mar 30, 2005
    Messages:
    12,238
    Likes Received:
    1,321
    I don't think you understand what "per capita" means.

    My household consisted of 4 people. When you divide my income by 4 you get our household per capita income, which would be around $32,000 or just slightly above the national per capita income. :)

    Not rich. Not even close. :)
     
  16. TCassidy

    TCassidy
    Expand Collapse
    Administrator
    Administrator

    Joined:
    Mar 30, 2005
    Messages:
    12,238
    Likes Received:
    1,321
    Because the present system is rapidly descending into insolvency.
    Really stupid idea. I hope Obama doesn't read it and and also decide it is a good idea.
     
  17. Bro. Curtis

    Bro. Curtis
    Expand Collapse
    <img src =/curtis.gif>

    Joined:
    Oct 25, 2001
    Messages:
    20,264
    Likes Received:
    4
    The end of a ponzi scheme is never pretty.

    The problem is the average lifespan is now over 62 years. That wasn't the case when the program was implemented.
     
  18. North Carolina Tentmaker

    North Carolina Tentmaker
    Expand Collapse
    New Member

    Joined:
    Sep 19, 2003
    Messages:
    2,355
    Likes Received:
    0
    Same source I used before, US Census:

    Median household income: $53,046, still well below half of the $117,000 cut of for FICA.

    Like I said before rich and poor are relative and we all choose our own path and careers, but even with advanced degrees my wife and my combined income will never approach yours.

    I am not saying that matters a great deal. I am glad you are rich. An individual or household in my region making six figures is considered very wealthy. Now I know our average incomes are well below the national average so in some parts of the country you might not be.
     
  19. North Carolina Tentmaker

    North Carolina Tentmaker
    Expand Collapse
    New Member

    Joined:
    Sep 19, 2003
    Messages:
    2,355
    Likes Received:
    0
    I checked further on the US census website. Breaking it down by county the median household income for my county in my state is only $34,981 (per capita is $19,008) so I guess we are well below the national and state averages. But we choose to live here. Our choice, I would not want to live anywhere else.
     
  20. Salty

    Salty
    Expand Collapse
    20,000 Posts Club
    Moderator

    Joined:
    Apr 8, 2003
    Messages:
    22,132
    Likes Received:
    221
    T- I fully agree it is a stupid ideal. Unfortunately our county is going in that direction little by little - .....
     

Share This Page

Loading...