Everything You Need to Know About the New Social-Security Recommendations
1. “Index the retirement age to longevity — i.e., increase the retirement age to qualify for Social Security — to age 69 by 2075.”
2. “Increase the Social Security contribution ceiling: while people only pay Social Security taxes on the first $106,800 of their wages today, that’s only about 86% of the total potentially taxable wages. The co-chairs suggest raising the ceiling to capture 90% of wages.”
The Grand Compromise: For every point we increase taxable income, we increase the retirement age by a year. We’ll be happy to tax 100 percent of income, as long as you’re happy to wait until 79 to retire.