The critics of Social Security like to suggest that everyone would be better off if Social Security allowed some form of a "market solution" that would hopefully generate a greater return on the funds invested. Of course, the difficulty with the market solution was demonstrated in 2000 and 2008 when the dot.com and real estate bubbles burst and took with them vast sums of the stock market's valuation.
Better than a market solution for SSDI?
What would you do if you woke up paralyzed?
We all like to think we can predict the future. We make our decisions, whatever they are, believing they are well-informed and have considered all of the possibilities. We often are proved wrong. Few people ever think they could suffer an injury or illness that would leave them disabled.
Reallocation of payroll tax to SSDI favored by Lew
The Social Security Administration (SSA) collects the payroll tax that funds the retirement and the disability trust funds. Currently the payroll tax is 6.2 percent on a taxpayers first $117,000 of income for this tax year. Of that tax, 5.3 percent goes to the retirement trust fund and 0.9 percent goes toward the Social Security Disability Insurance (SSDI) program.
