T Nation

Social Security and Medicare

Got a question for you all, and I am not sure if this was discussed before.

What are your thoughts on not having a Social Security or Medicare cap on payroll deductions, but a max on benefits.

As an example, most Americans never max out on their SS or Medicare deductions…some of the richest max out after their first check of the year.

Possibly a graduating scale for those who max out, where the SS and Med deduction becomes less each pay, but there is still a deduction all year ?

I know the system needs a complete overhaul, and this is another tax on the rich, but I would like to know what your thoughts are on this ( don’t kill me on this one !).

I think I know one answer though…the gov will find a way to spend that extra money some how…I guess I just answered my own question !

[quote]therover wrote:
Got a question for you all, and I am not sure if this was discussed before.

What are your thoughts on not having a Social Security or Medicare cap on payroll deductions, but a max on benefits.

As an example, most Americans never max out on their SS or Medicare deductions…some of the richest max out after their first check of the year.

Possibly a graduating scale for those who max out, where the SS and Med deduction becomes less each pay, but there is still a deduction all year ?

I know the system needs a complete overhaul, and this is another tax on the rich, but I would like to know what your thoughts are on this ( don’t kill me on this one !).

I think I know one answer though…the gov will find a way to spend that extra money some how…I guess I just answered my own question ! [/quote]

This is not the intent of the system. You are only supposed to pay in what you are going to get out. It would be a complete travesty to create yet another revenue source for gov’t to with what it wants. That should be reserved for income tax and general funds.

[quote]dhickey wrote:
It would be a complete travesty to create yet another revenue source for gov’t to with what it wants. [/quote]

Yup…figured that one out after I wrote it.