General Discussion
In reply to the discussion: A Simple Solution to Permanent Social Security Solvency [View all]exboyfil
(17,862 posts)subsidize social security by the reduced formula for their benefit calculations. That is why I propose no increase in benefits, but a lower withholding amount for income above the current $110K or so cap. In general I would make this lower withholding amount reflect the actual subsidized amount that those earning over $55K pay. I agree strongly that you can't opt out of your obligations to support lower earners when you reach a magic $110K threshhold. Any media campaign to remove the cap should explain how the benefits are actually calculated.
http://www.ssa.gov/pubs/10070.html#a0=0
Three levels of benefit calculation
90% - $ 0 to $9,204/yr.
32% - $9,204/yr. to $55,512/yr.
15% - $55,512/yr. to $110,100/yr.
Formula approximately adjusts for inflation. Another subsidization comes in with the tax on Social Security benefits for those earning income in retirement. In general that tax will fall disproportiately on those making over $55K during their working career.