There are several solutions to the problem of Social Security solvency. If action isn’t taken, Social Security could become insolvent in the next two decades. At The Seniors Center, we’re taking action by urging Congress to implement a Social Security solution that would benefit us all: scrapping the cap.
What is the Social Security Cap?
The Social Security tax cap is the limit on how much income will be subject to the payroll tax. Currently, any income over $137,700 isn’t taxed for Social Security. This means that those making more than this amount don’t contribute anything towards others’ benefits.
“Scrapping the cap” refers to the removal of the Social Security tax cap so that all wages are taxed for Social Security regardless of how much someone makes.
Why Should We Scrap the Cap?
Scrapping the cap would ensure fairness in taxation and help to extend solvency, as it would decrease benefits paid out while increasing revenue. According to Yahoo! Finance, this could generate “substantial revenue over time,” a sorely needed solution to Social Security’s funding woes.
Make Your Voice Heard—Help The Seniors Center Scrap the Cap!
At The Seniors Center, we’re calling on Congress to scrap the cap and make Social Security solvent for years to come. We need your help in making our voices heard. Join us by signing our online petition or by calling your representatives, and be sure to follow us on Twitter and Facebook so you can stay up to date on Social Security news and updates.