neither will a lot of high earners... my uncle for example was done paying in by February for decades...
The Social Security income cap, also known as the taxable maximum, has a history of increases since the program's inception. In 1937, the cap was set at $3,000, while in 2025, it is $176,100. The cap is adjusted annually based on the national average wage index.
Here's a more detailed look at the history:
Early Years (1937-1974):
The taxable maximum was initially set at $3,000 and increased sporadically by Congress.
1975 and Beyond:
Since 1975, the taxable maximum has generally increased at the same rate as average wages each year. This means the cap has risen more consistently over time to reflect wage growth.
Impact of the Cap:
The taxable maximum serves as a cap on both the amount of earnings subject to Social Security taxes and the amount of earnings used to calculate benefits.
Historical Trends:
In 1937, the cap was $3,000, and only 3.1% of workers had earnings at or above the cap.
By the 1960s, the percentage of workers with earnings at or above the cap rose to over one-third.
Since the 1970s, the cap has risen significantly, with only about 5-6% of workers having earnings that meet or exceed it.
Current Status:
In 2025, the Social Security wage base (taxable maximum) is $176,100.
The Social Security Administration (SSA) provides detailed information on the taxable maximum, including historical figures.
https://taxpolicycenter.org/sites/default/files/statistics/pdf/ssrate_historical_2.pdf
but hey... look at all the nice COLA's
The Social Security cost-of-living adjustment (COLA) for 2025 is 2.5%, according to the Social Security Administration (SSA). This increase will be effective starting with benefits payable in January 2025. For a retired worker, this translates to an average increase of $49 per month, according to Congress.gov. The COLA is designed to help Social Security beneficiaries keep up with the rising cost of living.
Here's a breakdown of the COLAs from 2020 to 2025:
2020: 1.3%
2021: 1.3%
2022: 5.9%
2023: 8.7%
2024: 3.2%
2025: 2.5%
and, had the elected 'greatest generation' and 'boomers' in office properly funded the mechanisms earlier we might not run the well nearly dry... by my 65th birthday.
In 2035, the Social Security program is projected to face a significant financial challenge. The Social Security Trustees project that the combined Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) trust funds will be depleted, meaning they will be unable to pay scheduled benefits in full. This doesn't mean the program will end, but it does mean that, without changes, benefits would need to be reduced.
Here's a more detailed breakdown:
Trust Fund Depletion:
The Social Security trust funds, which accumulate surpluses in years where income exceeds costs, are projected to be depleted by 2035. This depletion is primarily due to the increasing number of retirees (especially baby boomers) and a slower growth in the number of contributing workers.
Benefit Reductions:
If the trust funds are depleted, Social Security would still be able to pay some benefits, but not the full amount currently promised. The Social Security Administration (.gov) estimates that it could pay about 75-83% of scheduled benefits from payroll taxes alone.
Possible Solutions:
There are various proposals to address this shortfall, including:
Raising the full retirement age: This would delay the age at which people can claim full benefits.
Increasing the payroll tax cap: Currently, income over a certain amount ($168,600 in 2024) is not subject to the Social Security payroll tax. Increasing or removing this cap could generate more revenue.
Adjusting benefits: This could involve reducing the growth of benefits for future retirees.
Increasing taxes on higher earners: Some proposals suggest raising taxes on higher-income individuals to support the program.
Political Considerations:
Social Security reform is a politically sensitive issue, and finding a solution that satisfies both parties is challenging.
Impact on Individuals:
The potential for benefit cuts in 2035 is a serious concern for retirees and those planning for retirement. Understanding the potential impact and exploring options for personal retirement planning is important.
hope you get some of yours buddy because it appears to me the boomers are fucking everyone right behind them again and my generation is first in line... but I'll be fine.
By
Crnr2Crnr ·
