Can someone help me with these tax questions?
Can someone help me with these tax questions?
1.Which category of the Federal income is lower than the outlay for the same category?
2.What might this mean in terms of the financial health of the nation?
(please help if you know the answer. i can't find nothing on google.)thanks.
Answers:
Chosen Answer
bostonianinmo: Your question is not clear, but I'll take a stab at it. 1. Social Security is projected to take in less than it lays out in benefits as the Baby Boomer Generation starts retiring and collecting Social Security from a smaller workforce. While Boomers were working their SS taxes supported a smaller number of retirees than will be supporting them. 2. If nothing is changed in the near to mid term the Social Security trust fund will run dry sometime in the next 40 years or so. At that point there will be three choices -- do nothing and run up deficits, cut benefits about 25%, or raise Social Security taxes substantially. Alternatively, modifications to the SS program in the near future such as minor cuts in benefits or removing the wage cap on Social Security taxes will fix the system more or less indefinitely. My money is on removing the cap as it will only affect the highest paid earners Those earning over $102,000 per year in 2008 would be the only ones affected by the removal of the cap.
2008-01-17 17:04:56
bostonianinmo: Your question is not clear, but I'll take a stab at it. 1. Social Security is projected to take in less than it lays out in benefits as the Baby Boomer Generation starts retiring and collecting Social Security from a smaller workforce. While Boomers were working their SS taxes supported a smaller number of retirees than will be supporting them. 2. If nothing is changed in the near to mid term the Social Security trust fund will run dry sometime in the next 40 years or so. At that point there will be three choices -- do nothing and run up deficits, cut benefits about 25%, or raise Social Security taxes substantially. Alternatively, modifications to the SS program in the near future such as minor cuts in benefits or removing the wage cap on Social Security taxes will fix the system more or less indefinitely. My money is on removing the cap as it will only affect the highest paid earners Those earning over $102,000 per year in 2008 would be the only ones affected by the removal of the cap.
2008-01-17 17:04:56