- Pensions.. Archived Message
- Why Payroll Taxes Are the Achilles Heel of Social Security - Keith-264 August 21, 2020, 11:11 am
Posted by Gerard
on August 22, 2020, 11:03 am, in reply to "Why Payroll Taxes Are the Achilles Heel of Social Security"
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"Roosevelt wanted to design Social Security in such a way as “to preserve the system of private enterprise for profit…[and] compete as little as possible with private enterprises.” The program was to … embody to as great an extent as possible the principles of capitalism. To Roosevelt, this meant that a plan … must conform as closely as possible to the existing system of private insurance; … Social Security was made to inhabit and accommodate itself to the space within which private profit is made. [It] required, then, an economic counterpart to the private individual insurance premium… the payroll tax, a deduction from the wage." Aye here's the rub and as I believe you are intimating with this post we in the U.K understand this but still practice similar with N.I contributions.... "The National Insurance (NI) system was created in 1911 to provide assistance to workers who were sick and unemployed. A series of expansions in the 20th century extended its reach to add funding for the National Health Service, the public retiree pension plan, and unemployment benefits. Key Takeaways National Insurance Contributions are taxes paid by employees and employers in the U.K. National Insurance is an umbrella term for universal health care, the public pension program, and unemployment benefits. Employees may make additional voluntary payments to increase the pension amount they're eventually entitled to receive.* British workers pay their share of NI contributions to build up an entitlement over time for later payment of a pension and other government benefits such as a maternity allowance. In 2020, the rate was 12% of the worker's weekly earnings between the equivalent of about $220 a week and about $1,200, dropping to 2% above that maximum. The maximum regular pension benefit was about $215 per week as of 2020. Employees can make voluntary additional NI contributions in order to qualify later for a higher pension amount. Self-employed people and British citizens working outside the country also can make voluntary contributions to build towards pension eligibility. An employee who works or expects to work fewer than 35 years will not qualify for the maximum pension benefit without making additional voluntary payments*. The maximum pension benefit in 2020 was about $215 per week. The payout may be higher for employees who make voluntary contributions or defer taking the benefit until a later age" [url=https://www.investopedia.com/terms/n/national-insurance-contributions-nic.asp#:~:text=National%20Insurance%20Contributions%20%28NIC%29%20are%20taxes%20paid%20by,U.S.%20%28FICA%20stands%20for%20Federal%20Insurance%20Contributions%20Act.]https://www.investopedia.com/terms/n/national-insurance-contributions-nic.asp#:~:text=National%20Insurance%20Contributions%20%28NIC%29%20are%20taxes%20paid%20by,U.S.%20%28FICA%20stands%20for%20Federal%20Insurance%20Contributions%20Act. *Clearly inequitable under social legislation...any additional pension should only be in the hands of private pension providers...and the state pension should be adequate for all.. (funny you this goes hand in hand with fewer hours and better pay!) |
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