Lift the payroll tax cap? Both sides of the discussion
Given that Social Security’s Trust Fund balance of nearly $3 trillion will soon start to be depleted, there’s much discussion these days in the halls of Congress, and also in the Media, about eliminating the annual payroll tax cap. The tax cap, which limits the amount of annual earnings that FICA taxes are withheld from, is now $127,200 and anyone (read “the rich”) who earns more than that pays no further FICA tax for that year. Hence the argument that eliminating the tax cap will help solve Social Security’s solvency issues. But wait! There’s another side to this argument that shows the gross unfairness of that approach to higher earning Americans. So which is correct? This Motley Fool article by Sean Williams explains both sides of the issue. Click here to read more.
AMAC, the Association of Mature American Citizens, has been at the forefront trying to strengthen Social Security by developing and proposing its Social Security Guarantee. AMAC has been discussing and continues to discuss this common-sense solution with Congressional Representatives in its efforts to protect America’s senior citizens who rely on Social Security. To review AMAC’s Social Security Guarantee, click here.