For 2013, the Social Security payroll tax(FICA) applies
to only the first $113,700 a worker makes. This means that if someone earns 1 million dollars, they pay ZERO FICA tax on $886,300 of that income.
By increasing the income cap, we would not need to reduce SS benefits or raise retirement age. Eliminating the cap could raise $125 billion a year in revenue, about 9% of Social Security's revenue.
If all earned income above the current cap were subject to FICA contributions but did not count toward raising worker's future benefits, Social Security's projected deficit would be completely eliminated.
If the higher FICA tax paid did raise a worker's future
Social Security benefits, about 95% of the shortfall would be absolved.
Please join me. Ask Congress to raise the income cap.