To follow up on yesterday's post about Social Security.
(Keep in mind we don't pay into SS and then get our own money back, it was not set up that way.)
Lets talk about ELMO Musk and what he was "paid" from Tesla last year.
The total was $158.4 BILLION (yes BILLION) in total compensation.
The amount of taxes he paid on employment income? (not just SS taxes, income taxes as well)
ZERO
Now lets go further .... with current SS rules, IF it were employment income, he would have maxxed out paying on the first $176,100 and would have paid into SS $10,918.
Of course Tesla , as his employer, pays into SS the same amount, $10,918.
They didn't even pay that !!!
Now for the kicker : IF the SS limit taxable limit were eliminated, he would have paid $9.8 BILLION into the system. (Again Tesla would have paid $9.8 BILLION as well.)
That is just one of these people using the tax system as written , and we shouldn't blame them, BUT his share alone would been $19.6 BILLION.
This is multiplied numerous times with most extreme payment coming this way.
How much would that help the Social Security Pool if people paid tax on the full amount??
(The deficit in 2024 was around $100 BILLION.
If the upper limit was raised it should generate 250-300 BILLION into the pool !!!
You could CUT SS taxes by up to 1/2 and not have the issues.)
(BTW : People aren't paying into your own Social Security account. You're paying taxes that largely finance today's beneficiaries, while earning an entitlement under Social Security's benefit formula; when you retire, the workers at that time will largely be financing your benefits.")