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Saturday, May 14, 2011

FICA Tax in future years 2011 and Beyond

FICA Tax in future years 2011 and Beyond : Unfortunately for government coffers, the FICA increases are tied to inflation indices which tend to underestimate the real inflation Americans are seeing. Not only did we not see a FICA cap increase, but this year, Social Security recipients did not see a cost of living adjustment (COLA) either. So, in the end, I guess it balances out somewhat from a tax revenue standpoint net-net

But the Social Security fund is due to be depleted in 2037 and striking the 2011 2% reduction didn’t help matters. In future years, it wouldn’t surprise me if Congress enacted a new cap to make up the difference. If they increased it to say, $140,000 overnight, the vast majority of Americans would probably applaud it, while this would go a good way in bridging the Social Security fund depletion. After all, that’s a lot more politically savvy than increasing the retirement age or decreasing benefits to seniors, right? So, enjoy the bonus while you can – if you’re getting it in 2011. For the latest updates PRESS CTR + D or visit Stock Market news Today

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