Social Security 2100 Act
Congress needs to act to ensure the future of Social Security.
The 2018 Social Security Trustees report projects that beneficiaries will see a 21 percent cut in benefits by 2034 unless Congress takes action to prevent the funding shortfall. The Congressional Budget Office’s estimate is more dire, setting the year at 2031.
The proposal to tax wages up to $400,00 will extend the program’s solvency for 75 years, according to Social Security’s Office of the Chief Actuary.
According to the Congressional Budget Office, because earnings for the highest-paid workers have grown faster than the average wage, about 83 percent of total earnings fell below the Social Security’s taxable wage cap in 2016, down from 90 percent in 1983. We need to increase the wages subject to Social Security so that at least 90% of wages are subject to Social Security. For low- and middle-income earners, virtually every dollar they earn is subject to SS tax while higher earners escape tax on much of their income, plus they gain much of their income from sources NOT subject to SS tax such as from investment earnings which are taxed way below wages.
How do the wealthy benefit from the shrinkage of the middle class and growth of poverty?
Source: Financial Planning for Women