The wage base for the Social Security portion of FICA taxes in 2008 will increase to $102,000 from $97,500.

That means people who made at least that much in 2007 will pay a whopping $279 more next year.  It also means businesses will pay an additional $279 per employee who makes that much.

The self-employed who make that much will pay an additional $558, though they may recoup some of it through a deduction on their federal income tax return.

While this type of annual action is needed to keep up with increased wages paid to American workers, and therefore an increase in future entitlements owed by the government, it’s also a reminder that we have a government taking no action to fix a failing system.

With the first baby-boomer filing for Social Security benefits in October, and the life expectancy continuing to rise, the system is about to start hemorrhaging money at a rate that will have it giving out more than it takes in by 2027, and its reserves completely depleted by 2041, depending on where you get your information.  That means younger workers paying into the system today will receive scaled back, if any, social security benefits when its time for them to start collecting.   

And what are our elected officials doing about it?  Nothing.

Candidates for political office have paid lip service to the issue during every election cycle since 2000, but all they do, once elected, is appoint blue-ribbon commissions to come up with solutions they don’t/won’t implement.  It is my hope that we will demand real solutions from candidates seeking office in the coming election.