Allow the employee Social Security payroll tax rate reduction to expire at the end of 2012, as scheduled, and return the employee contribution rate to 6.2% of personal income earned.
Eliminate the maximum taxable earnings cap so the 6.2% would apply to ALL personal income. Use it only as a means to cap benefits for the first $113,700 in 2013.
The first step is a modest fix. It is augmented by the second step, which creates a massive influx of additional revenue while maintaining current levels of benefits and numbers of beneficiaries.
This should satisfy both those looking for a tax increase and those looking to address 'entitlements'. Accomplish these two simple steps and you fix Social Security overnight without decreasing benefits or increasing the retirement age.