Currently any personal income over $168,000 isn’t taxed for Social Security. If we made everyone pay Social Security taxes on all income it would keep the Social Security system solvent! This is a major issue for the people already on Social Security and also for people approaching retirement! The current tax code gives a break to people making over $168,000 per year. These people are obviously doing well and don’t need the tax break like lower income people. Taxing all income would bring in extra revenue without hurting the middle or lower class citizens!
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Perfect! I wholeheartedly agree, with one upgrade resulting in a tax savings for those earning up to $176,100 (FY25 cap) and those earning over $176,100 will pay additional taxes.
In 2025 the Social Security tax is capped at $176,100 or 6.2% of your wages.
In 2025 the Medicare has no cap and is taxed at 1.45% of your wages.
Both are matched by your employer.
As mentioned, tax every wage earner on every taxable dollar they make. There should be no cap on Social Security just like Medicare. Drop the current Social Security rate to 3.1% and keep Medicare at 1.45%.
Earners will take home an additional 3.1% in their paycheck for those earning less than $176,000 in FY25. Those earning more than $176,100 they will pay and additional 3.1% on “all” of their taxable earnings.
Bottom line: 3.1% on Social Security wages and 1.45% on Medicare wages - NO CAP ON EARNINGS!
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