most folks pay social security tax at 6.2% and their employer kicks in 6.2%. The two year reduction was to 4.2% for the employee. This reversion back to 6.2% alone takes $110 B out of economy....but guess what? Federal Employees don't pay into social security just into their gravy train retirement plan that is based on top salary and years of service. The private sector on the other hand have to invest for our own retirement. So buffoon Potus/Obama is making a big deal about the $85 B in spending cuts cause it affects his boys and girls at the federal government but doesn't give a hoot about the $110 B in consumption reduction taken away from the common private sector folks. Stock market will crash soon no matter what happens because the economy is crashing and the stock market leads the economy so it will crash before the economic collapse is apparent.
That payroll tax cut should never have been initiated in the first place. It may have put a few bucks in wage earners pockets, but it underfunded social security. abummer just gave wage earners back some of the money they would have contributed to the SS fund. So they spent that money now instead of having it saved for later. With the rising prices of food and gas, I'm not sure those few bucks made a difference; yet, when we ask the government to cut back 2% on the rate of growth of spending, they act like the world will end.
If some average "baby boomer's" are thinking like myself, ( hey mildred, let's cash out). That would be good for the U.S. dollar. This fracking thing of oil is a plus. The republican's want to be the party of the rich. As an average retired person, and a two term viet nam era military Veteran, limbaugh and his oreo "black" person, does not buy my vote.
ALL Federal employees hired after Jan 1985 (90% of current Federal employees) Fall under the FERS retirement plan which does indeed comprise of Social Security along with the TSP (401K type plan). So IBDFOOL they indeed pay into social security. Get your facts straight before spewing your BS,
Don't matter. The whole magilla economy vs stock market is out of whack. True price discovery will be met and the those that will be rich are those that short it at the right time. I will collect the free cash on the long side but will short this to kingdom come when the times comes. Again, wait for Ben to pull out.
Sentiment: Strong Buy
I agree. But am on ss. I can still trade my ira account though. Wish though that congress would change the rule's. I will be forced to cash out soon my ira account once , God willing, i turn 70.
That's a lie. Federal employees do pay into social security just like any other employee. The "high three" system only applied for employees who have been with the federal government since 1986 or before. All federal employees since then are under FERS.
Under FERS every employee receives 1-1.1% per year of federal service towards their pension depending on when they retire or want it to kick in. The rest of their retirement is a voluntary 401K-type system called the TSP. Agencies match up to 5%.
It's obviously still a very generous system but I wanted to point out that your information is wrong. Public salaries/pensions are out of control at any level (state, federal, local).