Kellerhaus, Weirs Beach

[P-3 Guy]

Originally Posted by cillovely

FICA tax went from 4.2% to 6.2% And with that tax it also hurts employers since they have to match that tax and pay Uncle Sam for our phantom SS benefits that will maybe be there when we retire.

The FICA rate had previously been 6.2%; the reduction to 4.2% was a temporary measure. Anyone who was informed about the matter knew that it was scheduled to revert to the 6.2% rate at the beginning of this year.

Whether or not future SS benefits are "phantom" or not is a matter of debate, but I can tell you one thing for sure: the less money that is paid into SS (i.e. the FICA tax that employees and employers pay), the less chance there is that you'll get the benefits that you think you're entitled to. Wanting to pay less money and get the same benefits is not a sustainable financial strategy, folks.

Edited to add: this article from Forbes does a really good job of explaining it.

http://www.forbes.com/sites/anthonyn...-tax-increase/

[SAMIAM]

Originally Posted by TMI Guy

The FICA rate had previously been 6.2%; the reduction to 4.2% was a temporary measure. Anyone who was informed about the matter knew that it was scheduled to revert to the 6.2% rate at the beginning of this year.

Whether or not future SS benefits are "phantom" or not is a matter of debate, but I can tell you one thing for sure: the less money that is paid into SS (i.e. the FICA tax that employees and employers pay), the less chance there is that you'll get the benefits that you think you're entitled to. Wanting to pay less money and get the same benefits is not a sustainable financial strategy, folks.

Edited to add: this article from Forbes does a really good job of explaining it.

http://www.forbes.com/sites/anthonyn...-tax-increase/

Sounds like a cheerleader for higher taxes.....just a reminder,SS is not a benefit that we "think" we're entitled to.It is OUR money....contributed over a lifetime of working........this is why we don't have a political thread on the forum.

[P-3 Guy]

Originally Posted by SAMIAM

Sounds like a cheerleader for higher taxes.....just a reminder,SS is not a benefit that we "think" we're entitled to.It is OUR money....contributed over a lifetime of working........this is why we don't have a political thread on the forum.

No, not a cheerleader for higher taxes, just explaining the facts, which so often get lost in discussions like this.

And yes, as a contributory retirement system, anyone who pays into SS is entitled to benefits. The question is, HOW MUCH? Because as the system is currently set up, on average the benefits obtained exceed the contributions made. How much more than YOU contributed over your working life are YOU entitled to once you start collecting benefits?