Hate to say it but I think what will happen is that they will get rid of the SS tax cap. Right no only the first $118,500 of income is subjected to SS tax. I’ve seen estimates that if you got rid of the cap it would fund SS until the 2070s. If you also put a maximum cap on benefits it would extend it even longer. I think this will be the most politically viable way of saving SS.
As far as getting rid of it totally I believe that is impossible. If we tried to do that the democrats would hammer us. And with 66% of retired people depending on SS for 50% or more of their retirement we might never win another election.
Only if their is a free-market choice component ( aka 401k type plan Which FDR wanted and it never occured ) and take it out of Congresses hands, oversight yes, but not control. As much as I can't stand them, if SSI dollars go out and buy an annuity of my choice from the private sector, I could live with it. I wish we had a dozen men and women like John Bogel to sit on the board of this private system. Mr Bogel is too old and every day we have him is a blessing.
IMHO Fedzilla basically tried to mimic insurance / annuitization with SSI. I suggest anytime they try to "mimic" the private sector ( can you say Obamacare? ) that they think again. we have had over 80 yrs of they me-too-ism fubar's enough is enough.
First, the tax cap is raised almost every year. SS income caps
In 2000 the cap was $76,200. In 2017, it will be $127,200.
Removing the cap entirely would amount to one of the biggest tax hikes in our history. It would have a major impact on business. The cap is already removed on the Healthcare portion of the payroll tax and it has not prevented Medicare from running in the red since 2008.
And by removing the cap, you would also increase retirement benefits.
Yup. They are going to lift the cap on the payroll tax. And they will implement a Tobin Tax on Wall Street transactions.
Both will be wildly popular. The situation defies any other political solution.
I hate to run-up the white flag and say “Conservatism can’t win”. But on this issue we really CAN’T.