Eliminate the cap on earnings subject to Social Security tax withholding, and make employers match full amount dollar for dollar.
This will call on top earners to contribute more toward the basic economic security of the nation’s elderly and families, commensurate with top earners’ ability to pay. In a time of growing reemergence of inequality between the richest and poorest American families, this change would reduce inequality.
It would also balance Social Security’s finances for the next 75 years!
Annual earnings subject to Social Security taxes are currently capped at $110,100. Only 6 percent of workers earn more than that. These top 6 percent get a boost in their take home pay when they reach the cap and stop paying into Social Security for the year.