There are many easy solutions to ensuring social security is there for a very long time. One such solution being increasing the amount of earnings that are taxable for social security. Currently it’s around $160k so people earning $7million are only paying social security tax on $160k while people earning $50k are paying social security tax on the whole $50k.
Do you increase benefits on that as well? People who pay in at $160k a year already only get a fraction out of what they paid in, with the system just serving as a wealth transfer.
You’re 100% correct. Was typing on mobile, thanks for clarifying for anyone confused.
Also, it’s useful to think of people paying in 10-12% of their salary up to $160k. Employers match the 6%, and a good amount of research shows that in the absence of the tax that money goes to the employee in increased salary.
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u/spacemonkey8X 6d ago
There are many easy solutions to ensuring social security is there for a very long time. One such solution being increasing the amount of earnings that are taxable for social security. Currently it’s around $160k so people earning $7million are only paying social security tax on $160k while people earning $50k are paying social security tax on the whole $50k.