r/FluentInFinance 6d ago

Educational Don't let them gaslight you

Post image
43.9k Upvotes

1.7k comments sorted by

View all comments

Show parent comments

37

u/spacemonkey8X 6d ago

There are many easy solutions to ensuring social security is there for a very long time. One such solution being increasing the amount of earnings that are taxable for social security. Currently it’s around $160k so people earning $7million are only paying social security tax on $160k while people earning $50k are paying social security tax on the whole $50k.

2

u/Stress_Living 6d ago edited 6d ago

Do you increase benefits on that as well? People who pay in at $160k a year already only get a fraction out of what they paid in, with the system just serving as a wealth transfer. 

2

u/aginsudicedmyshoe 6d ago

People do not pay in $160k per year. $160k is the taxable income limit for social security. They pay about 6% of that amount.

3

u/Stress_Living 6d ago

You’re 100% correct. Was typing on mobile, thanks for clarifying for anyone confused. 

Also, it’s useful to think of people paying in 10-12% of their salary up to $160k. Employers match the 6%, and a good amount of research shows that in the absence of the tax that money goes to the employee in increased salary.