It’s a shame that we are “supposedly” the richest country on Earth, yet we cannot provide healthcare for our citizens, upgrade our infrastructure and make Social Security viable.
The solution for the latter is to remove the cap on wages taxed for Social Security.
Medicare is already taxed on all earned income at 2.9 percent which is split between employer and employee. Social Security is taxed for gross wages up to $184,500 at a rate of 6.2 percent for employee and is then matched by the employer for a total of 12.4 percent.
Once the cap is removed, Social Security would be flush with money, because the employer would also be matching the additional 6.2 percent. With salaries in the millions for sports figures, CEOs, tech moguls etc., 12.4 percent taxed upon millions will be the solution to solve this problem. These salaries are often taxed only on the first paycheck of the year. While everyone under $184,500 pays the entire tax on every dollar they earn throughout the year.
Many other countries have already figured this out — health care for all, upgrading their infrastructure and taking care of those in need. Social Security isn’t only for the elderly. The program also helps children and adults who have disabilities, children who have lost parents and those who are unable to work because of an onset of illness.
The cap needs to be removed.
