Barron's senior reporter Al Root, reporter Carlton English, and associate editor Ben Levithorn discuss Social Security and the potential for raising revenue by increasing taxes on people earning more than $400,000.
Unfortunately, most politicians and economists do not explain our $34 trillion debt I'll explain it in a simpler way, but provide some insight into how the basic math works.
If you really understand this mathematics, it is not difficult to guess what the future results will be. With four more years of Bidennomics, there is no doubt that a permanent tax on Social Security will become the most important policy at both the individual and corporate levels. Here's why:
The Social Security Board estimates that the Social Security Trust Fund will be depleted in 2041.
If you think of the government like a business (a company that is in trouble), the government doesn't make money by selling cheeseburgers or listing products on Amazon, so the way we make money is largely There are three parts. They are:
- Personal income tax (47% of US revenue)
- Payroll taxes (Social Security and Medicare) (37% of US revenue)
- Corporate income tax (9.5% of US revenue)
Coke's mini-Social Security could make it harder for retirees to get Social Security by next year
On the other side of the books, we have a budget deficit of about $1.8 trillion a year, with the top four expenditures being:
- Medicare/Medicaid (24% of spending)
- Social security (22% of spending)
- Defense (13% of spending)
- Net interest on debt (11% of expenses)
Pennsylvania Republican Rep. Brian Fitzpatrick and former investment banker Carol Ross discuss how inflation and “negligent” monetary policy are ruining Americans on “Evening Edit.”
Unfortunately, most of us don't have printing presses in our basements that spit out thousands of dollars, much less the trillions of dollars we seem to be printing on a regular basis. So how do you clean up this mess? How can you “balance” your budget?
It's simple: you need to reduce expenses, increase revenue, or a combination of both.
U.S. Retirement System Scores Just a C+ in Global Survey
In its latest position, the Social Security Board estimates that the Social Security Trust Fund will be depleted in 2041 under current law. If you don't know how your current Social Security (his FICA on your paystub) taxes work, here's a basic explanation.
- Employees pay 6.2% of every paycheck into Social Security until they reach the FICA wage base cap of $168,600 in 2024.
- Additionally, employers also pay the same 6.2% with the same cap.
- If you're self-employed, you'll get the most enjoyment out of paying both halves of your Social Security taxes (note: you'll get a small tax credit when you file your taxes).
California Republican Rep. Ro Khanna talks about the Los Angeles school strike, the fallout from Silicon Valley banks, and his proposal to fix Social Security.
President Biden has made it clear in 2023 that he wants the payroll tax to become a “permanent” tax once income reaches the $400,000 threshold. This means that for every dollar that both you and your employer earn above that level, he is liable to pay 6.2%.
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This is actually a somewhat sneaky way of increasing corporate taxes while increasing personal taxes on Americans who work hard and earn money. And the “donut hole,” or the difference in income between $168,600 and $400,000, is no longer that big of a difference, so if the government under Bidennomics just claims that Social Security is Social Security, , no huge leaps of logic are required. If that happens, a permanent tax would be fully implemented under the second administration.
With nearly half of American households paying no federal taxes at all, it's not all that surprising that the only solution that keeps coming up with Bidennomics is to raise taxes on the wealthy. If 50% of the population doesn't pay federal taxes, where else will the taxes come from? You take it from the people who are paying you and make more money.
Sen. Bill Cassidy (R-Louisiana) offers insight into cleaning up the Social Security system regarding “Kudlow.”
Businesses account for only 9.5% of the revenue we generate. Raising their taxes may put a strain on the economy, but it's nowhere near as much as the national payroll tax.
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So buyers, be aware that a permanent tax on Social Security is one of the biggest goals expected over the next four years, impacting both you and your employer.
Tick-tock. Tick-tock. The $34 trillion debt continues to decline, and some may lose 6.2% of their income.
Ted Jenkin is CEO and co-founder of oXYGen Financial.
