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Re: SS cola

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Message 71 of 72

I need my SS benefit even though it is low. I'm divorced and struggling daily. I started out on disability after my divorce.  I still qualify and my future is not bright.

 

We've had no increases in 3 of the last 5 years. This is a disgrace. Folks in other countries get more than we do here.  THe medical premiums for Pard D have now tripled and include higher deductibles.

 

All this Congress has to do is raise the amount of taxable earnings before the Social Security taxes stop. IT's at $118,500 now and should be at $250,000.  There will be no cuts in paying premiums and we should get a higher benefit.  Pensions don't go up and stagnate the longer you live.

 

Sen. Warren's bill to get $580  will be paid by us out of future benefits. The thing to do - vote Democratic with a high turnout and have AARP lobby for us in Washington DC.

 

Dental and eyeglass expenses are high too and still not covered by Medicare. The previous generation did better than we are doing.  I'm disgusted and thinking of going to Canada to live.

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Re: SS cola

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Message 72 of 72

elceca wrote:

. . . . .   "All this Congress has to do is raise the amount of taxable earnings before the Social Security taxes stop."  . . . . . .

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The amount of the payroll tax cap increases at the same rate and schedule as the COLA computation.  That is why, this year, the cap did not increase because according to the computation of the CPI -W (the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), there was no inflation to justify either a COLA to those who receive it based on this figure or an increase in the FICA payroll tax cap for Social Security.

 

Some seniors complain that the COLA formula does not take into consideration their medical cost - but that one is on Medicare and there is NO income cap on earned income for the amount paid in by workers and their employers for Medicare.  2.9% of earned income for Medicare - 1/2 from employees and 1/2 from employers.

 

Let's say tomorrow Congress approves such an increase as you have suggested - going from the now $ 118, 500 to $ 250,000 - that is $ 131, 500 difference.  Do you really realize what that will do to families and businesses having to start paying in all of that money at one swoop?

$ 131,500 X .062 = An ADDITIONAL $ 8153 per year from the earner

And $ 8153 per year from the employer = $ 16, 306 per employee.

 

That's on top of what they pay in now

$ 118,500 X .062 = $ 7347 from the employee and the employer = $ 14, 694

 

or said simply, A person making $ 250,000 would be paying in, counting both employee and employer contribution =  $ 31,000 per year as their contribution to Social Security.

 

Does the cap need to be increased more than now - YES,. but not all at once - until it reaches and stays within that 90% of average earnings as the program was meant to do.

 

Most of the Congressional options to fix Social Security by raising the cap to $250,000 was done over a decade (10 year period)

 

Course then you have to decide whether or not to increase the benefit for those paying in more - if they get an increase in benefits, although a progressive increase, then the raise in the cap accomplishes little to prop up the overall SS Old Age/Survivors Trust Fund, really defeating its purpose in the 1st place.

 

If it is decided that they would receive NO increase in benefits for the additional contributions, the Trust Fund would be healthier BUT it would then become a two-tiered system; not what was invisioned by FDR which was more of an insurance program.

 

elceca, it all comes down to numbers and what we want the program to be -

however, we certainly don't want to create harm to our current fragile economy and to our children and grandchildren, now and into the future.

 

I'll post the government link, if you want to read about the options that are now on the table and the CBO analysis of each.

Congressional Budget Office December 2015 Social Security Policy Options, 2015

 

Nothing in government is ever as simple as you think - that's why people need to understand how things work before jumping in with both feet because for every action taken by government, there is a reaction of huge proportion and we need to understand the whole picture before jumping in -

 

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MY SIGNATURE: "It’s Always something" - Roseanne Rosannadanna
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