Employer contributions to Social Security???

[HuskiesHowls]

Half of the money that goes into Social Security now, is withheld from my wages. The other half is contributed by the company I work for.

The question becomes: What happens to the money contributed by my company, if I have a "personal" stock market account?? Do they no longer have to contribute?? If so, that means that the money going in, is even LESS than what it would be if only my money goes to my "private" account.

I don't know that this has been addressed before, and I'm just curious if this is just a way to let employers make larger profits.

[senseandsensibility]

1. This question was asked on Ed Shultz

yesterday by a caller. Ed didn't know. Does anyone else?

[ibid]

8. borrowed money is spent - and lender gets a US Bond.. So Social

Security monies are spent - there is no plan to cut the payroll tax flow of money by cutting any of the tax the employer pays on behalf of the employee.

If there were, the 10 year deficit would double to 4 trillion and the 20 year deficit would double to 10 trillion. Numbers so large that even GOP party lies could not cover the planned for disaster.

However, while economists say the employer paid tax is the same as a employee payroll deduction - effectively part of your wages - the GOP plan to pretend - if this is passed - that the employer paid portion is a dedicated welfare program tax that must be cut or ended.

But that is a 2025 problem only if we do not stop the current "reform". The current GOP disaster must be stopped.

[havocmom]

2. I believe they get to dedct the part they pay now from their gross

so they still get a break.

[SoCalDem]

3. We did address it here when the "plan" was broached.. I even called

Cspan and asked that question from a SS "expert" they had on.. He had no answer:)

I will look for the post and repost the chart if I can find it..

You can bet your last dollar that the "employers" will get to "opt-out" of matching the "private" investment...That single fact will KILL SS, because as less and less goes into the pool, there will be no option other than to cut benefits and start dropping people off it completely

[donco6]

4. I would imagine the employer

would have to provide money for you to contribute. That's the way many of the state employee retirement systems work.

[SoCalDem]

5. Found it !!!

SoCalDem (1000+ posts) Fri Feb-11-05 08:02 PM
Original message
Okay.. you "invest" one half your share of social security withholding

Edited on Fri Feb-11-05 08:08 PM by SoCalDem
Right now, you are tagged for 1/2 and the boss for a matching 1/2..

Does anyone really think that bosses will continue to "match" the full amount, when you may be investing 1/2 of HIS matching funds on something totally stupid that will lose money?

My bet is this..

for simplicity's sake we'll use 8 percent as the amount (I know it's not that amount)

Right now the employee gets credit for

4 from employee
4 from employer

=8

with the *² plan you could end up with

2 "invested"
2 to SS from employee
2 to SS from employer
=6

so right from the get go, before any "account manager" starts grabbing "administration fees" from your "private account", you have lost 1/4 of your former "set aside" money....plus what the fund managers will take as commissions, handling fees, slush-fund management.. whatever they will call the thing.

Bosses will scream and holler about how unfair it is for THEM to have to subsidize their employees' "gambling" , so mark my words, they will be only required to match what the employee puts into SS..

Will the bosses raise the employees' salaries so they get that "extra" 2% ??? Dream ON!!

[SoCalDem]

7. Another one with graphs

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=104&topic_id=3299812




SoCalDem (1000+ posts) Sat Mar-19-05 07:49 AM
Original message
Let's say you're 25 and have your "personal SS account" for 40 years


You earn $25K (average)..This is what the interest calculator says your "account" would be worth after 40 years @ 3% compounded monthly.. Now assume that the "regular" SS is REDUCED by up to 30%...Is it really worth the gamble to you???? Once the money in your "account" is used up....IT'S GONE!!! and your SS will NOT be increased because you "outlived" your personal account..



2%


4%



Masterpiece

[Cleita]

6. Too bad you weren't at Dumbya's press conference to

ask that question. Betcha he doesn't even know that the employers contribute a matching amount.