Wednesday, November 10, 2010

The New Social Security Program for Professionals - We'll Take Out More, Give Back Less

I knew this was coming.  If you wade through the powerpoint from the Federal Debt Commission, here is what they want to do with Social Security:

  • " Gradually increase the taxable maximum to capture percent of wages by 2050" (Page 46) - In other words, the cap at which SS is taken out of paychecks would go up and up.
  • "Increase progressivity of benefit formula" (Page 45) - In other words, the more you make, the less you get.
So all that money taken out for Social Security (and which you are still taxed for at 100% at your total income level) is going to go up, but you are going to get a lot less back.  This shouldn't surprise anyone.

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