Comment on Keep in mind that social security is set to run out in 10 years time.
MystikIncarnate@lemmy.ca 7 months agoCan you explain what the person in the OP picture is referring to as “the cap”? What is it? How is it defined?
Is it like, up to $x? Or something? For contributions?
Kage520@lemmy.world 7 months ago
SS takes a % of your pay up to a certain amount. I am not sure the “bend points” so I will give fake numbers. Up to maybe $50k per year, you get a very strong “return” for that contribution. Your SS check will be low, but then again, you didn’t put in much over your life. Now up to like $100k, you will get a larger check. But not double. From there to like $140k, you still get a larger check, but not 40% more than the $100k.
After $140k, you are no longer required to contribute. With the diminishing returns, it would not have increased the SS check much (if at all) anyways.
What the OP picture is suggesting is to continue to make them pay into SS even though they would get little or no return on it. I see why that makes some sense, but since this is technically not a “tax” but a required pension system, I think they would have to rewrite it all to make sure it was fair that way.