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To Fix System That Let Trump Stop Paying Social Security Taxes 40 Minutes Into 2016, Sanders Says 'Time to Scrap the Cap'


#21

My favorite track. Second one is “Grandchester Meadows.”
I had this a quite awhile before getting the next.
Ummagumma


#22

Floyd Is Mellow.


#23

Best Waters song.
Never saw these live clips. Astronomy is a great music sound, but the live voices not so good. . Critical much?
Optical illusion at 2:42 Looks like he has three hands.


#24

Except, of course, tRump has other sources of income. You can’t be THAT ignorant of reality.


#25

We don’t know that because we don’t how his businesses are structured. If they are pass-through entities he could well be reporting $600 million of top line income on his tax return.

Sen. Sanders is well aware of the distinction you are pointing out. He’s making a political point, not a nuanced legal argument. Pedantry is not useful here.


#26

Dennis, the benefit under Social Security is computed off of the covered wages on which you pay social security taxes. If you uncap the taxes, but there is still a cap on the benefit that is computed, it ceases to be a defined benefit pension plan. The formula, as it is now constituted, skews towards more benefits on lower dollars, but for every dollar taxed, there is a benefit accrued.


#27

But that isn’t how it works under current law and it isn’t how it works under ether the Senate or House versions of the reform bills. There simply is no cap on benefits and never was. Only a cap on the wages that count (ie. what’s called the base wage). If the base wage goes up - the benefits go up.

For example, under the Sanders bill if you have an income of $300,000 then you would pay the tax on about $182,000 of your income (the part below the current wage base of 132000 plus the part from $250000 up to your income of 300000). If you maintained that wage in an inflation adjusted way for 35 years then the $182,000 number (again adjusted for inflation) would be the average that your social security benefit would be based on according to the formula I posted above - so your benefits check would be .15 times 50000 = $7500 per year higher than any amount you could get now.
Again - no cap on benefits written into the law - never was - and is not being proposed now.
Also again - because of the 15% benefit payout rate for the upper end income - Social Security makes about a dollar for every 60 cents it would be paying out to these type of individuals (they lose money long term on the lower income level people because the marginal benefit payout rate is higher).


#28

Because being POTUS is an actual salaried job (play golf, eat free cheeseburgers, get an oval office), Mr. Trump has been paying Social Security tax on the first $100,000 of his annual salary. Otherwise he wouldn’t have a salary to pay any Social Security tax on. So, in 2017 and 2018 Mr. Trump may in practice have contributed about one thousandth of one penny toward your entire retirement. Don’t spend it all in one place.


#29

What you refuse to acknowledge is that the formula is based on covered compensation. If you remove the cap on taxed income, but do not accrue benefits based on all income, you have changed a pension plan into a welfare plan. If you are paying taxes on income that is NOT included in the benefit computation, you have changed the nature of the program.


#30

No one is paying taxes on any income that is not included in the benefit calculation. I have no idea where you got that idea - but it is simply wrong.


#31

Hey, he definitely contributed more than i did. I know that for sure. Plus, whatever he contributed is going toward today’s SS benefits. Apparently by the time i retire it’s gonna be all gone.


#32

I don’t think he’s that stupid or at least his accountants aren’t. Way more tax breaks on other types of income.


#33

Of course he does. And i just said he ain’t paying SS taxes on them.


#34

If benefits are capped, and the income that is subject to benefits are capped…

Under current rules, one accrues benefits based on earnings up to the Social Security maximum. At the maximum, both the benefit accrued, and the taxes paid are capped. Under Sanders’ proposal, benefits are still capped, based on the current $132,900 (adjusted for inflation) but taxes are unlimited. Someone earning, for example $2 million will pay taxes based on all their income, but their benefit is based on the lower benefit cap. There is nothing in the bill that takes the additional earnings subject to tax into account for benefit computation purposes.


#35

I don’t see that anywhere in Sanders proposal. Where did you get that? I provided a link to the text of his proposal above. There is no change in the benefits formula that I can find.


#36

Look in the bill.

https://www.congress.gov/bill/115th-congress/senate-bill/427/text?q={"search"%3A["actionCode%3A\"8000\"+and+(billIsReserved%3A\"N\"+or+type%3A\"AMENDMENT\")"]}

No increase in the benefits, but an additional tax.


#37

I looked at the bill - and read it too. Where does it say no increase in benefits? As far as I can see it makes no mention of the benefits formula at all - leaving that as it is in current law - so there is an increase in benefits that goes with the increase in income that is taxed. (note also - your link is to the proposal in the last session of congress - while I was linking to the proposal before the current session of congress - but I don’t see any difference wrt the issue here).