If we’re to retain the Social Security system and make it work, I think it needs to be a little more "progressive," but maybe we can do it in a way that’s not overly burdensome to the wealthy.
It seems to me that the current wage cap should be scrapped. Currently you only pay Social Security taxes on the first $90,000 you make in a given year. Maybe instead of a tax cap, we should simply lower the payroll tax percentage at 90,000 and above, to say, maybe, 5%, and then cap the benefits, so most of that additional 5 percent is redistributed where it’s needed most.
I’m generally not in favor of redistributions of wealth, but that wage cap seems more regressive than fair, and by capping the benefits instead of the taxes, it will encourage those with the money, who will still be taxed a lower rate than those who earn less, will be encouraged to invest (as they probably already are).
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