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On Thu, 14 Apr 2011 12:19:10 -0400, wrote:

On Wed, 13 Apr 2011 15:43:41 -0700, wrote:

On Wed, 13 Apr 2011 12:40:29 -0400, wrote:

On Tue, 12 Apr 2011 22:24:26 -0700, wrote:

Which has minimal or nothing to do with the solvency of Social
Security.

The point is they are chipping away at the promise (we were told SS
would never be taxed), to make SS more solvent but, as you say, the
effect is minimal. I bet there are more promises that will be made
"inoperative" as this problem continues.

SS benefits are not taxed until you reach the threshold. Then you're
taxed. Why is that a problem for you?

There is no "chipping away," unless you mean the Republicans in the
House and Senate.

SS was supposed to always be tax free, at least that was the promise
when I started paying my FICA into it. Now it is taxed. I still bet it
will virtually be confiscated in the future if you have any other
significant source of income. My SS and pension alone is enough to
trip the tax trigger now and I haven't tapped my 401k yet.

Two things are certain to happen if SS is going to survive. The age
will go up and there will be a means test.
I know you deny it but you are in denial about all of these debt
problems.

Sure. Well, I'm not sure when you started paying into it, but in the
last millennium or so it's taxed after you reach the threshold.

There's already a "means" test, since if you make more than a certain
amount, it's taxed. It's possible that the age might have to be raised
and while that might be ok for white-collar workers, it's probably not
a very good thing for blue-collar.

I made my first FICA payment in 1965. I started working in 1962 but I
didn't make $500 each year so I didn't pay SS.

They started taxing SS benefits in 1983 (thanks Ronnie)

I agree the tax is a means test and I bet it gets bigger as SS starts
running into more trouble.

Raising the age for all retirees is just the consequence of people
living longer. Our current pension/SS model is unsustainable.
I paid into a pension plan for 30 years, If I live to 80, I will
collect longer than I worked. How can that be?

So, you agree then that there's already a means test. Thanks.

We might need to raise the age, but it must be done slowly not
overnight.