I have been doing some research on the SS issue. It seems that in 1983 (Reagan admin), Rs and Ds got together to try to save Social Security. One thing they agreed on was that the salary cap at 90% was reasonable. However, the cap apparently has been increased at the cost of living rate, while incomes at the upper levels have been increasing much faster. Thus since some time in the 1990s the cap has drifted down to hover around 85%. I think last year it was even as low as 82%. All we need to do is insist that Congress or whoever sets the cap return to the bipartisan cap rate of 90%, then to make up for the 15 years when it was much lower, it should be increased by 1/2 or 1% to the 95% level and held there until SS is solvent again. Since by that time the baby boom elderly bulge will have gone by, then it could be lowered back to the 90% level.
Also in 1983 it was agreed that for the first time SS income should be taxed (whatever happened to no tax Republican ideals). A complex calculation formula was developed that included a deduction for $25,000 for single people, and $32,000 for married couples. Unfortunately, this figure was NOT indexed, so now we have a problem similar to the Alternative Minimum Tax (AMT). If this deduction had been indexed, the single rate would be over $57,000, and the married rate over $74,000. I would love to marry the fine man I have met since my husband died 6 years ago, but we really cannot afford it at the 1983 rate. We could if Congress would index that deduction to today’s value and index it permanently as they apparently have done with the AMT. It is ironic to think that widows and widowers are feeling compelled economically to “live in sin” by this oversight.
Don’t really sympathize. Imagine you’re trying to get married for the FIRST time but you’re shelling out SS Tax.
I’m sorry you don’t love your partner enough to sacrifice for them.
But even this can only be done for so long. Sooner or later what you pay in over the years is far less than what you get back in retirement. Indeed, we're already there. I hate SS.