Question about SS privatization and employer contributions

[dansolo]

Currently employers and employees are required to contribute to SS and Medicare (FICA). There is one item that I have not heard addressed by anyone in the SS privatization debate. What happens to the employer contribution if SS is privatized? Will employers still be required to contribute the same amount as now? Or is this going to be a secret "tax cut" to employers, by eliminating a forced contribution to the government, which will be unnoticed by most people?

[ribrepin]

1. I don't know

It's something I've been wondering about myself. If I had to take a wild guess, I'd say that the employer contribution will be dropped. No one will notice until after this monstrosity is passed.

[Yupster]

2. The contributions would be

exactly the same as they are now is what I heard.

The only difference is you'd have a choice to put aside 4 % of the 12.8 % total into a private account. For that you would get the private account or a guaranteed pension maybe 75 % of what you're scheduled to get now -- whichever option is bigger at retirement. You wouldn't get both though.

That was the explanation I got at a seminar I just attended given by an economist for a mutual fund company.

The proposal isn't in writing yet, but that's what he said it would end up being.

[markus]

5. If the waiver of future SS is true

this needs to be burned into everyone's minds, especially the younger voters this is targeted at.

This goes hand in hand with "their is no crisis". They need to know that they will be forfitting any claims to government assistance in their old age if the stock market tanks when they most need it.

[blurp]

3. Employers SHOULD get that sort of tax cut.

Or is this going to be a secret "tax cut" to employers, by eliminating a forced contribution to the government, which will be unnoticed by most people?

It's incredibly stupid to tax companies based on employment.

Companies that create jobs should not be penalized with a tax.

Payroll taxes do just that: encourage companies to employer fewer, OR FOREIGN workers.

It was a stupid tax when it was created and it's still a stupid tax.

[SoCalDem]

4. My guess would be that if you reduce YOUR contribution to SS,

your employer's portion would be reduced as well.. Remember.. the "private" account is VOLUNTARY...so maybe the boss will not volunteer HIS share too..

or it may be like 401-ks are now.. you only get 100% matching when you reach a certain percentage, and the boss's contribution has a max that is lower than the employees..

The smartest thing that could have been done to "help" SS..

Eliminate the "cap" on income subject to FICA
and mandate that all companies offer 401-k

the company matching funds could even be made deductible if the government wanted to "help" them..