The Windfall provision on social security to go away?

[326MOD10]

I think the connection is so many get funding they shouldn't that it takes from the big pot that could keep SS solvent and fair.

But I get your point on drifting and am back on point.

 

[steelslaver]

In reality it all comes from the same pot and that pot is either filled by a tax on EARNED money. SS withholding, income, capital gains, whatever OR the money created by increased debt is a tax. That increase in funds due to debt especially over the last 17 years (not just the last 3) has lead us to the inflation we are seeing right now. You can't toss an additional 23 Trillion dollars in the money pool and expect to get any other result. That is an additional $77,000 per person and about $130,000 per actual tax payer. Every dime of your SS check or wage you make or have saved is being TAXED by that inflation. In addition, the ever increasing interest on the ever increasing debt, means less in the pot.

WEEEEEEEEEEEEEEE

 

[yaktamer]

Lots of misunderstanding of what WEP does. Eliminating the WEP would NOT result in paying people who haven't contributed. Simply put, WEP applies to people who HAVE paid into the system long enough to meet the threshold to qualify for benefits, but who (1) have paid in for less than 30 years AND (2) receive a pension from a job that was social security exempt. As LV Steve notes, the WEP formula involves a number of factors, but essentially applies a sliding scale reduction in benefits based on how much under the thirty-year contribution time is involved. So if you paid in for more than 30 years, your benefit isn't reduced. If, like me, you've paid in for 28 years on "substantial earnings" -- an inflation-adjusted number -- you'll receive a small reduction. If you've paid in for less than that, you get a bigger reduction, although the percentage of reduction remains the same for those contributing for under 20 years, and there's a cap to how much the reduction can be, currently just under $600 per month.

 

[biku324]

And to be clear, income tax is very separately accounted from FICA & sel-employment (SocSec insurance) and Medicare insurance payments. These are not drawn from the larger pool of income taxes, although if Congress doesn't add revenue or reduce benefits, some general income taxes would have to be added in from 2034 through 2097; existing FICA, stc., will still cover 80% of all benefits through 2097.
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