Why the SSA cap MUST be removed. SCRAP THE CAP!

[634-5789]

[DeeDeeNY]

1. That makes the most sense

Scrapping the cap is the easiest and fairest way to keep Social Security solvent and fully funded going forward.

[markodochartaigh]

2. A larger and larger percentage of total income is

going into the pockets of fewer and fewer people. If those people are paying into Social Security on only a tiny portion of their income, it should be obvious that Social Security is going to become weaker and weaker.

[COL Mustard]

4. I wonder how many of these people

Actually pay into Social Security. I know you pay on earned income, but is their income earned or is it something like dividends? I don’t know, but it would be interesting to find out.

I usually hit the cap in late October, and I agree…it should be lifted. There’s no Medicare cap, why isn’t it the same for SSA?

[paleotn]

16. Capital gains aren't subject to SS taxes. Only their earned income, if any.

[COL Mustard]

24. That's what I thought, so they may not be participating anyway.

And even though it would cost me money directly, I am for lifting the cap. There is no reason for it anymore, and that would be a simple way to increase SS revenues.

[SheltieLover]

3. Reinstate the wealth tax!

[MerrilyMerrily]

5. Or at least try Al Franken's donut idea

Leave the cap where it is for people earning just over the limit, leave a hole for breathing room, and require people making OVER a certain LARGE amount (say, a million? Two?) to pay in to SS again - on the amount earned above that.

[Callie1979]

6. Seems like a good plan

[JT45242]

7. $400k ...Biden proposal

You could make an argument that in some excessively high cost of living areas (silicon valley, Seattle, NYC) that $400k is still somewhere in the middle class.

Let the cap rise to close the donut.

Would still protect social security and have the rich pay a fair, if not complete, share of their earnings.

[KS Toronado]

9. Always liked Al Franken's donut idea

[paleotn]

18. Compared to income taxes, SS rates aren't very high...

6.2% and applicable to employee and employer alike on the same dollar of earned income. Make it simple. Apply it to all earned income, no limit, no donat holes. If that exceed revenue targets, lower the rate a bit, but don't over complicate. That's where the US system gets into trouble. A lot of mischief occurs in the rules and exceptions. Just don't go there.

And if you really want to fund Social Security properly, apply the SS to capital gains, particularly carried interest. The most pernicious tax dodge of all.

[MichMan]

20. Why should any income be exempted?

Undercuts the argument about fairness.

[twodogsbarking]

8. I am in favor of taxing the rich but I oppose using SS as a tax. Fix the tax system.

[mopinko]

11. yeah. i dont want to see the program

detached from being an insurance/individual benefit.
start paying bennies out of someone else’s money and it becomes a major target. (and yes, i realize current wage earners r paying my benefits.)
i fear the roots of the program r about to b lost and forgotten.

[Shrek]

13. +1

SS was originally meant to be social insurance, i.e. a way to mitigate the risk of poverty in old age.

It's widely popular but support will drop if it becomes explicitly a program for transfer payments.

[mopinko]

15. the oligarchs will step up their attacks.

[paleotn]

19. It is a tax no matter how you want to slice it and that's fine.

Just like your car, life and homeowners insurance are household costs no different really from your mortgage, rent and groceries. The nomenclature is meaningless. A supposition on my part, but if you think there's some kind of "lock box" somewhere, you're sorely mistaken. Pissed me off every time Al Gore even mentioned those words. Each generation pays the retirement of the prior generation and so on and so on and so on. It's fair and it works. Excess funds are invested in US government securities by law, drawing interest on the debt from general government operations.

[Katinfl]

10. But they still receive a monthly benefit?

[Wednesdays]

21. Yeah. Please think of those poor, poor billionaires!

[lastlib]

12. That certainly brings it home!

This is a change whose time is long overdue!

[jonstl08]

14. Keep the employer cap

Keep the employer cap but eliminate the employee cap. Or you could cut the FICA tax in half for people over the cap so they receive a cut.

[JT45242]

22. No employer cap...you want to pay people that much budget the social security like they do 401k match. No more '1099'

Employers need to pay in as well.

We need to get rid of the loop home for employers who screw over employees by calling them self employed.

My wife likes her boss but he has screwed her out of his share of social security for a dozen years by calling her a contractor and using a 1099. It's bullshit. (Looking at you Uber, door dash, etc)

[jonstl08]

23. Did I not say that

I said to keep the employer paying until the individual cap is reached. I agree employers do screw over employees by making them independent contractors. I see this every year in the tax office. People told where to work and what time to be there but then are issued a 1099. I tell those clients to contact the IRS and report them because they should be a w2 employee.

PS this happened with a landscaper company. Most of the employees were immigrants. Employer made them independent contractors but they were told where to go and when along with hours they were to be on the job. They were reported and lost. Since the IRS had 1099's it was easy to fine them for back taxes along with social security and medicare. The fine was huge and message was sent. Virtually all employees the next year for landscapers and roofers were W2 employees.

[Takket]

17. but then the rich would have slightly less money and is so, how can they create jobs for everyone?