5) Bolster Social Security by having the wealthy pay the same percentage as their secretaries and servants.
Social Security payroll tax contributions are only paid on wages up to $117,000 in 2014, , with employees and employers contributing equally. Less than 6 percent of the population has wages above the cap. While the vast majority of Americans must make payroll tax contributions on all of their wages, millionaires and billionaires only do so on the first $117,000 of their earnings. Scrapping the cap so that all earnings are subject to the payroll tax would come very close to closing Social Security’s entire projected 75 year funding gap.
Congress scrapped the cap on payroll tax contributions to Medicare’s Hospital Insurance Trust Fund in 1993. It’s time for Congress to do the same for Social Security. www.robinhoodtax.org/