Affording Social Security

"Failure will never overtake me if my determination to succeed is strong enough." Og Mandino

The first complaint from business will be that they are already taxed too much, no different from the American public. How are we, business and individual, supposed to be able to afford the changes in Social Security I talked about in the last two posts.

As for the individual, there will be an increase in the taxes that they pay, if they earn more than $102,000 a year. I am not too upset about it, maybe I would be if I earned over the maximum and now had to pay into the retirement fund and forgo the “raise” provided by the ending of being taxed like the majority of the population.

As for business, I would end their contribution to the Social Security fund at the new maximum of $250,000. That is an increase in the taxes which they pay and there is no getting around that, unless you make all taxes collected by Social Security and Health Insurance pre-tax dollars.

No, that will not make your contributions to retirement balance out, but it will reduce the pain.