You are mixing apples and oranges.
From what you just posted, you used “cap” and also “payroll” and then talk about taxation, but do not make clear that you are dealing with payroll taxes.
Lets try to be clear here.
I do think that the “cap” on the amount of earnings subject to SS taxation, for wage earners, will go up -— in fact I think that cap might be eliminated entirely!
As far as the taxation of benefits that are already being received, my math, above, though not all inclusive of all the details, clearly shows that it most middle class folks, on SS, are being taxed on 50% to 85% of their benefits NOW! The formula is simply awkward, and most people do not understand that they are being taxed on SS.
The cap goes up every year. Contribution and Benefit Base. Obama has said that he wants to raise it immediately to around 200K to 250K. He has never said that he wanted to eliminate it altogether. I suggest you read the following to see why the cap will not be eliminated entirely. FYI: There is no cap on HI.
Removing Social Security's Tax Cap on Wages Would Do More Harm Than Good
As far as the taxation of benefits that are already being received, my math, above, though not all inclusive of all the details, clearly shows that it most middle class folks, on SS, are being taxed on 50% to 85% of their benefits NOW! The formula is simply awkward, and most people do not understand that they are being taxed on SS.
You do if you do your own tax return. Ignorance is bliss--for the politicians. Hell, most people believe that their SS contributions belong to them.
They’ll try to inflate their way out of it by printing money. By the time all the old folks realize they can’t cover their ever increasing expenses it will be too late.