Social Security
By DeleteMaster May 21, 2023
Without action, Social Security benefits may decrease by 25%, leading experts to propose a tax cap solution.
The Social Security trust fund reserves could become insolvent within a decade, necessitating a solution to ensure long-term stability.
Currently, workers and employers each contribute 6.2% of wages towards Social Security, with earnings above $160,200 exempt from the tax. Slide 4:
Increasing the income cap to $250,000 or eliminating it altogether could replenish the trust fund reserves and shift the burden to wealthy individuals.
Only approximately 6% of wage earners hit the current income cap, leaving the burden disproportionately on those earning less.
– Raising the retirement age to 70. – Increasing the payroll tax rate to 15.6%. – Privatizing Social Security. – Imposing a Social Security tax on business and investment income.
Consider the advantages and disadvantages of each proposed solution, analyzing their potential impact on different segments of the population.
Discover the importance of finding a sustainable solution to protect Social Security for future generations and ensure financial security for all Americans.
Learn about the ongoing discussions among experts and lawmakers, highlighting the urgency of implementing effective measures to safeguard Social Security.