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The US Senate Committee on Finance held a hearing a couple of weeks ago.
http://www.finance.senate.gov/hearings/hearing/?id=c0515365-5056-a032-52ff-a46da139d2d6
The DI (disability insurance) portion of Social Security is projected to run out in 2016. BTW - SS in general is on path to deplete its reserves in 2033.
Interestingly, the case is made that by rebalancing the proportion of payroll tax dollars apportioned to DI and SS, they both can remain solvent through 2033.
Most employees pay 6.2% of their income to SS taxes. (employers provide a matching 6.2%) Of the 6.2%, 5.3% goes to SS and .9% goes to DI. So, the "experts" are saying that a simple congressional rebalancing will result in a stable DI and SS until 2033, without raising any taxes. Obviously 2033 is not that far away, and something must be done to shore it up. The "experts" are proposing to eliminate the annual taxable income cap - currently at $117K. They say that there are 5% of the workforce who make more than the current cap. They don't say how much this will improve the situation, but the gist seems to be that those who make more than $117K can easily afford the additional SS taxes.
I make no comment - just wanted to put the info out.
http://www.finance.senate.gov/hearings/hearing/?id=c0515365-5056-a032-52ff-a46da139d2d6
The DI (disability insurance) portion of Social Security is projected to run out in 2016. BTW - SS in general is on path to deplete its reserves in 2033.
Interestingly, the case is made that by rebalancing the proportion of payroll tax dollars apportioned to DI and SS, they both can remain solvent through 2033.
Most employees pay 6.2% of their income to SS taxes. (employers provide a matching 6.2%) Of the 6.2%, 5.3% goes to SS and .9% goes to DI. So, the "experts" are saying that a simple congressional rebalancing will result in a stable DI and SS until 2033, without raising any taxes. Obviously 2033 is not that far away, and something must be done to shore it up. The "experts" are proposing to eliminate the annual taxable income cap - currently at $117K. They say that there are 5% of the workforce who make more than the current cap. They don't say how much this will improve the situation, but the gist seems to be that those who make more than $117K can easily afford the additional SS taxes.
I make no comment - just wanted to put the info out.
