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tazzygirl -> RE: Congress to raise retirement age? (7/14/2010 1:26:37 PM)
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boi
The system is designed to help those who did not have the help they needed at the time the system was implemented. I have long disagreed with SS not being income based. There is always the potential of being rich beyond belief one day, and being dead broke the next, as we have often seen with the wild swings of the stock market and law suits. Its a reality of life, and i view SS as a hedge fund against such drastic turns.
someone who retires with a "substantial non-Security income" doesnt need that hedge at that moment. They may in a few years, depending on their investments and such. At which time their need will be evident, and they should become eligible. The maximum payment into the system is half employee, half employer.
quote:
The OASDI tax rate for wages paid in 2010 is set by statute at 6.2 percent for employees and employers, each. Thus, an individual with wages equal to or larger than $106,800 would contribute $6,621.60 to the OASDI program in 2010, and his or her employer would contribute the same amount. The OASDI tax rate for self-employment income in 2010 is 12.4 percent.
http://www.ssa.gov/OACT/COLA/cbb.html
I have yet to see this benefit set to an income test, meaning eveyone draws from the system, regardless of personal wealth or lack thereof. Someone with substantail wealth would not even miss the $6600 plus, but i would be all for advocating the ability to take it as a deduction on their own taxes.
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