[jIM_Ohio]

SS is nothing more than a wealth transfer system (and social insurance). Most workers pay 3.5% of their salary into this (and your employer pays another 3.5%). Self employed people pay 7% of salary into this.

401k deferrals and similar deductions do not reduce the SS/FICA contribution.

The questions (big picture) would be
a) what would you do if the 3.5% was given to YOU and not to the government
b) is their value in having a "safety net" to provide income for people which would be otherwise destitute?

I personally would love a 3.5% raise. I could invest this more and turn it into much more than the income stream SS comes out to be.

SS behaves more like an annuity that anything else. The primary issue though is an annuity gives a higher return. If you look at your SS contributions, then plug the "expected SS income" into an annuity calculator, you will see yourself getting an annuity with a 3.5% return.

But remember that you actually put in 7%, so the question remains, where is the other 3.5% going now, and can they fix this system?

My simple solution would be to lower the "salary cap"- currently any income over 93k is not subject to SS tax. I suggest lowering this based on 401k contributions or similar- meaning if I contribute X% to 401k, then decrease the cap by y%. To point where if savings rate is 20%, the 3.5% fica is NOT withdrawn from paycheck (employer still contributes), and the SS benefit for that person is reduced.

FYI- more than likely this person would have SS taxed at 50%, so their expected benefit from system would be quite low. My general attitude is to give the government less, and have the government provide less to people with less to begin with.

There is nothing in the constitution which suggests all people must get the same medical care, live at same locations or get everything they want.