SSI cap

Many people say we should end the SSI cap but then we have to pay more.
We should use this formula total amount paid in = P
1000(log10(P/1000)) this way yes we pay out more to people that pay in more but not much and we make disabled and 62 the same and like 1/3.

the only people who would pay more would be extremely high earners. why should a waitress pay a bigger percentage of her wages in SS taxes than a hedge fund billionaire? doesn't make sense, and no benefits will need to be cut for retirees if we get rid of the cap.

the only people who would pay more would be extremely high earners. why should a waitress pay a bigger percentage of her wages in SS taxes than a hedge fund billionaire? doesn't make sense, and no benefits will need to be cut for retirees if we get rid of the cap. Originally Posted by pxmcc

SSI stands for Social Security INSURANCE.

Doesn’t anyone understand how insurance works? It’s called a risk pool for a reason.

If we want to fix SSI for the foreseeable future we need to both raise the cap as well as increase the taxable rate by one to one and half percent.

the only people who would pay more would be extremely high earners. why should a waitress pay a bigger percentage of her wages in SS taxes than a hedge fund billionaire? doesn't make sense, and no benefits will need to be cut for retirees if we get rid of the cap. Originally Posted by pxmcc

Because it represents contributions to retirement pxmcc. And as TxDot puts it, insurance. Does it make sense to pay in $1000 for retirement or insurance and just draw $1.00 out? That's what would happen to the billionaire class if the cap were removed and applied to all income.

In order to keep social security and Medicare solvent, it does make sense to raise the cap somewhat and increase the employee and employer contributions, as suggested by TxDot. But removing the cap entirely and levying employment taxes on investment income, which already bears the Obamacare tax, would be a mistake IMHO.

Sincerely,

Tiny, Champion of the Billionaire Class

If they remove the cap, which at this time is around $176,100, can you imagine what Pro Athletes, Rock Stars, and high end celebrities would pay in each year.

And they would still only get the $5108, same amount as I do, because I waited until 70 and had a high earning income for well over 40 years.