A Call to Subject All Salaries to Social Security Payroll Taxes
It is now common knowledge that Social Security is facing a severe funding shortfall. If nothing is done, benefits will be slashed by about 20 percent in the next 10 years. This is devastating news for the millions of seniors who rely on Social Security for their retirement income.
An op-ed piece in the St. Louis Post Dispatch says the solution is not to raise the retirement age to 70 — forcing employees to pay into the system for an additional three years and receive three fewer years of benefits — but rather to subject all salaries to the payroll tax. For 2024, only the first $168,600 is taxed. This would spread the burden evenly to everyone and ensure high-wage earners pay their fair share.
The Seniors Trust supports this idea. Lifting the wage cap is one of the tenets of the Social Security Expansion Act. When enacted, this landmark piece of legislation will increase monthly benefits, create a strong and long-lasting trust fund, and establish a fair cost-of-living adjustment (COLA) that reflects the actual spending habits of older Americans.
