If action isn’t taken, Social Security could become insolvent in the next two decades. However, there are several options to address this serious issue. 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.
The Social Security tax cap is the limit on how much income will be subject to the payroll tax. Currently, any income over $184,500 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. This would ensure all wages are taxed for Social Security regardless of how much someone makes.
Scrapping the cap would ensure equality in taxation and help to extend solvency, as it would increase revenue and provide resources to restore the Trust Fund. According to Yahoo! Finance, this could generate “substantial revenue over time,” a sorely needed solution to Social Security’s funding woes.
Help The Seniors Center Protect the Future of Social Security
At The Seniors Center, our goal is to help seniors, and we’re doing that by protecting the future of Social Security. Follow The Seniors Center on Facebook for more updates! And join our newsletter list to get the latest updates!
