General Discussion
In reply to the discussion: Raising the retirement age - how many people will end up [View all]TexasBushwhacker
(20,044 posts)In the past, approximately 90% of all wages were subject to SS tax, and the fund was healthy in perpetuity. But now, with so much of the new income going to the top 1%, those extra wages, anything over $118K, are not subject to SS tax. Now the amount of all wages subject to income tax is only 85%.
Many just say raise the cap, but I like the idea of an untaxed window. They could gave a window of income not subject to SS tax of, for example, between $125K and $250K. Then someone who makes $500K (or $5 Million) would pay SS tax on the first $125K and on the income beyond $250K. That way the additional burden is more on the top 20% (especially the top 1%) and not so much on the upper middle class. The size of the window (smaller or bigger) could be adjusted as needed to keep SS solvent forever.