03-03-2025, 01:26 PM
pdq wrote:
You know, I read the other day about a plan to save Social Security for the foreseeable future. It simply required lifting the cap on SS taxable earnings to $250,000.
Some history:
Since 1982, the Social Security taxable earnings base has risen [by law] at the same rate as average wages in the economy. Because the cap is indexed to the average growth in wages, the share of the population below the cap has remained relatively stable at roughly 94%. However, due to increasing earnings inequality, the percentage of aggregate covered earnings that is taxable has
decreased from 90% in 1982 to 83% in 2016.
If you’re employed, you pay SS tax of 6.5% of your SSA earnings and your employer pays 6.5%; if you’re self-employed, you pay both halves. For higher employed earners, the maximum tax increase resulting from a change like this would amount to ~$5K, if you make $250K/yr or more; ~$10K if you’re self-employed. And Social Security is saved.
Do you think Elon could afford that?
The dismantling of Social Security is in no way related to its projected solvency.