Plus, workers whose salary is more than $90k don't pay FICA



Dave wrote:
And, of course, get a much smaller percentage replacement of their
income
through SS when they retire.


Walt wrote:
As things are structured now, yes. But if you let social security
"reform" go through as proposed, the percentage replacement will be
about the same: i.e. SQUANTO.


I thought the Bush/Cheney SS reform plan was pretty much
dead even before this recent election.

But you are correct in that the difference in payouts from the social
security system mitigates the regressive nature of its collection.


DSK wrote:
And the problem with that is.... what exactly?


Walt wrote:
I don't believe Dave thinks it is a problem. Of course I'm sure he's
quite capable of speaking for himselef.

Much of the time, yes.... he seems to get shy sometimes though.

DSK wrote:
Social Security is not an investment plan.


And I mention this because a LOT of people seem to think
that it is, or should be. And let me also say that I would
prefer to see Social Security fixed by shrinking it rather
than by growing it.



People who make over $90K/yr have much more comfortable options to
support them in retirement... unless they **** away their money
stupidly, which seems to be the new American way.


Walt wrote:
That's new?


Sure. $90k/year puts you in the upper brackets... of course
it's not so great as it used to be... wherein one was an
educated professional (who would receive, as part of their
education, some lessons in managing money) and/or one who
inherited wealth (and thus had one finances guarded by the
family banker). It was also before easy credit and a culture
of mass commercialism.

Nowadays, people rise into fairly lofty positions with quite
narrow educations, and also feel pressured to ignore
sensible household economics (if they were ever introduced
in the 1st place).

Are we supposed to feel sorry for the person who, at 65, is
earning $90k/yr + and is looking at retiring with a net
worth in the red & no retirement income beyond Social Security?

DSK