All this talk about tax cuts has me confused. If a tax break for me of 2% (from 6.2% to 4.2%) means more money now, does it affect my retirement benefit from Social Security? If I am contributing 4.2% then is my primary insurance amount going to be lower when I retire?
All this talk about tax cuts has me confused. If a tax break for me of 2% (from 6.2% to 4.2%) means more money now, does it affect my retirement benefit from Social Security? If I am contributing 4.2% then is my primary insurance amount going to be lower when I retire?
6.2% to 4.2% is a 32% tax break.
While not a direct effect to your “account”, the reduction in revenue to SS will cause the funding to run out sooner. The result being your benifit will either stop, your taxes will be raised, or inflation will destroy the value of money allowing SS to give you a “benifit” which will not be worth anything. Great economic sense from both parties trying to buy votes this year and forgetting about the future!
I do believe it will – why would it not.