monty wrote:
Keep in mind, my parents on SSI paid 4-5% over their working lives for Fica, I am paying 7.45%. And now many want to remove the cap...not sustainable. // Well the other thing to consider is that since it was never a lock box of money paid in, it is going to fluctuate with the highs and lows of birth rates. Right now we are coming into the baby boomer era, so there is going to be a ton of pressure on the system for awhile. In about 20 years it will eb to a much lower number, unless of course they find the fountain of youth in the meantime. I think eventually they will have to lower benefits or freeze them in place for awhile, but any real fix is going to be met with serious opposition no matter what. It may just have to fall off the cliff before congress ever acts, would hate to be one of the folks that doesn't get a seat when the music stops!!
And some have tried...and were demonized (FAIR Tax, GWB, Ryan). Our entire future is about the demographics with the way we fund things. And since people will be living longer, I don't think its going to eb in the next 20 years, maybe in 100 years. Whatever we do, I think we should do away with FICA taxes and acting like these are separate program funding by this separate tax. Either just have one income tax or move this and healthcare to a VAT/consumption tax and that money truly does stand alone.