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YellowSubmarine Wrote: In what country in the world does cost of living only increase by .2% from one year to the next? That's absurd. Might as well not even do it at all. Yea, this is really sad. I am a firm proponent of dramatically overhauling the Social Security program by increasing the upper cap from $118,000 to $1 million or higher. The cap is woefully low and has to be changed soon.
I am not so sure. Correct me if I'm wrong, but SS benefits are like a government mandated retirement account. Maybe you don't agree with my wording there, but still. Everyone is required by law to chip in throughout their entire working lives, and then ideally everyone gets SS benefits paid back to them by monthly allowance when they reach retirement age, and choose to accept the benefits (from age 62-70).
So the problem I see here is with fairness. If someone that makes 60K a year his or her entire life and someone that makes $2 million a year throughout their working life pay in the same amount into SS and get the same amount monthly when they retire, that seems fair. BUT if the $2 million yearly earner pays in substantially more, but when he or she retires only gets the exact same monthly payout as the lower earner, how is that fair?
Unless that higher earner would in turn get MORE monthly benefits as a reward for when they retire, I don't think it's fair to raise the cap. You are simply punishing the higher earner.