They sure don’t use means testing when applying the taxes to our paychecks. If this story is true, it sounds like they’re getting it backwards again—are they going to penalize people who have actually saved for their retirements and reward people who haven’t?
Sure they do - only the first $113K gets taxed.
If this story is true, it sounds like they’re getting it backwards again—are they going to penalize people who have actually saved for their retirements and reward people who haven’t?
Yes, because everyone who can find a green card or a leg injury can suck out SSI....again, wealth re-distribution and no adjustment to the age since 1934.
I have over $150K contributed already (I’m 44). It’s done.
If I know I’m not getting any, why pay into it?
“are they going to penalize people who have actually saved for their retirements and reward people who haven’t?”
Yup.
Since there are too few producers, and too many takers, Fedzilla (Ryan et al.) want to punish the producers in order to reward the takers.
That’s going to be a real incentive to work, huh?
Of course they do, it's called a tax bracket.
Let’s apply “Truth in Advertising” to the term “means testing.”
Means testing is nothing short of massive generational long robbery. Approved by the Government for the benefit of the Government. The means testing will occur after the fact not before. And it will occur near the retirement of the people the Government is robbing. The victims of the robbery are supposed to be thankful that they are being allowed to keep their saving.
IMHO 401Ks and other such programs will be looted by the Government long before the individuals reach retirement age. Don’t think is going to happen? Got news for you folks it is already happening in Europe - what makes you think it is going to stop at the water’s edge?
The BLUF is any social security program can not survive more than one generation after its inception. In the 1930’s the average life expectancy was the late 60’s - a few years after you became eligible for social security. A majority of the early payees didn’t reach 65. Now, almost three generations after it was established the average life expectancy is in the mid to late 70’s with a significant number of payees reaching their 90s. Plus, SS is paying for a lot more then just retirement. So, the supporting infrastructure - aka TAXES - for SS can not support its payments. What’s a Government to do?
“are they going to penalize people who have actually saved for their retirements and reward people who haven’t?”
You betcha.
OF COURSE! That's the federal government way.
The government rewards those who: drop out of school, don't work, have babies out of wedlock, don't pay their mortgages, on and on. The government penalizes (taxes) you for working hard and saving your money.