How about removing the cap. Why not pay SS on all income, not just the first 130K...or whatever it is.
IMO, removing the cap WILL happen. It’s crappy economics, but it garners 70%+ approval in opinion polls.
The Tobin Tax on Wall Street transactions will also be done, because that again polls well.
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How about removing the cap. Why not pay SS on all income, not just the first 130K...or whatever it is.
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Sadly, more and more around here seeming to think MORE taxes/govt are ‘solutions’
Because there is a cap on the amount one can draw out.
The cap goes up almost every year now. If you increase the cap, you also increase the employers share of the contribution. Removing the cap altogether is a bad idea. It would amount to biggest tax increase in history that could hurt the economy in many ways. Already 80% of working people pay more in payroll taxes than they do in income taxes.
In 2000 the cap was $76,200; in 2010 it was $106,800; and in 2017 it is $127,200.
“How about removing the cap. Why not pay SS on all income, not just the first 130K...or whatever it is.”
at which point SS would become just another redistributionist income tax, taxing the rich and paying the poor, because they won’t remove the payout cap when they remove the tax cap.